Mumbai, January 29, 2025 – Sharda Cropchem Limited (NSE: SHARDACROP, BSE: 538666) has received favorable orders from the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT), significantly reducing its contingent tax liability by ₹145.60 crores.
Key Developments
- The company secured favorable orders from the Hon’ble Commissioner of Income Tax (Appeals) for Assessment Years 2015-16, 2016-17, 2017-18, 2018-19, 2020-21, and 2022-23.
- On January 27, 2025, the Assessing Officer (ACIT) implemented the favourable CIT (Appeal) orders for AY 2015-16 to 2018-19 and AY 2020-21.
- Additionally, on January 25, 2025, Sharda Cropchem received favorable orders from the Income Tax Appellate Tribunal (ITAT) for Assessment Years 2016-17 and 2018-19, dismissing revenue appeals against the company.
- The ITAT ruling allows product registration expenses as revenue expenditure, further strengthening the company's tax position.
Financial Impact
- Total reduction in contingent tax liability: ₹145.60 crores.
- Resolving these tax disputes removes potential financial risks, enhancing profitability and cash flow stability.
Regulatory Compliance & Corporate Governance
Sharda Cropchem emphasized that the rulings reinforce its commitment to regulatory compliance and strong corporate governance. The company will continue to ensure transparency and accuracy in financial reporting.These developments mark a significant legal and financial victory for Sharda Cropchem, potentially improving investor confidence and market positioning.