Himatsingka Seide Limited has informed the Exchange about updates on Ongoing Litigation(s) or Dispute(s)
HIMATSEIDE · price
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The company has disclosed an update on a transfer pricing dispute with the Income Tax Department. The case relates to Assessment Year 2009-10 and involves transfer pricing adjustments concerning corporate guarantees provided to subsidiaries, loans to Twill & Oxford LLC (voluntary liquidated associate) and Himatsingka America Inc. (step-down subsidiary), and classification of investment in Bellora as revenue in nature. The Income Tax Appellate Tribunal (ITAT) has dismissed the Revenue Department's appeal against the CIT(Appeals) order, deleting additions to the extent of Rs. 5.85 crores in favour of the company. This marks a favourable outcome in a long-running tax dispute spanning over 15 years.
The ITAT ruling in the company's favour removes a potential tax liability of Rs. 5.85 crores, which is positive for shareholders as it strengthens the company's financial position. The case has now reached a resolution with no adverse impact on the company.