Madras High Court sets aside ₹353.18 Crore tax demand against IRFC, remands for reconsideration
The Madras High Court has set aside a ₹353.18 crore tax demand against IRFC related to unutilized ITC. The matter has been remanded for reconsideration, with a fresh order expected within three months.
While the demand has been set aside, the matter is still open for reconsideration. The potential financial impact will depend on the outcome of the fresh order, but the immediate uncertainty is reduced.
The court's decision to set aside the tax demand and remand the matter for reconsideration is a positive development for the company, as it removes the immediate financial liability and provides an opportunity for a favorable outcome.
Indian Railway Finance Corporation Limited (IRFC) has announced that the Hon'ble High Court of Judicature at Madras has passed an order dated July 27, 2026, which was received on July 29, 2026. The court set aside an impugned order and a recovery notice concerning a demand of ₹353.18 crore.
This demand was raised by the Assistant Commissioner (State Tax), Chennai, pertaining to ITC available in GSTR 2A but not claimed (lapsed), among other factors. The matter has now been remanded for reconsideration. The court has stipulated that a fresh order will be issued within three months from the date of receipt of a copy of this order, after providing a reasonable opportunity to the petitioner, including a personal hearing.
IRFC has submitted this disclosure in accordance with Regulation 30 read with Para 8 of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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