United Breweries Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
UBL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
United Breweries Limited informed the exchanges that the Income Tax Department's National Faceless Assessment Centre (NFAC) has passed a fresh assessment order in the case of the UBL Gratuity Trust for Assessment Year 2022-23. The original tax demand of about ₹102.44 crore (INR 1,024,400,466) has been substantially reduced to about ₹3.21 crore (INR 3,21,09,412), comprising tax of ₹2.18 crore and interest of ₹1.03 crore. The reduction follows a Karnataka High Court order that remanded the matter back to NFAC for fresh consideration. The Trust has stated it has strong grounds to contest the remaining demand and plans to file an appeal before the Commissioner of Income Tax (Appeals).
This is a positive development for United Breweries and its shareholders, as the tax liability exposure for the UBL Gratuity Trust has dropped by roughly 97% from over ₹102 crore to around ₹3.21 crore, significantly lowering the contingent liability on the books. The remaining small demand is being appealed, and the final outcome will depend on the CIT(A) ruling.