Paradeep Phosphates Limited: Income Tax Demand of ₹20.61 Crore Quashed, Refund of ₹20.57 Crore Granted
Paradeep Phosphates Limited's ₹20.61 crore income tax demand for AY 2020-21 has been quashed. The Assistant Commissioner of Income Tax passed a rectification order on May 20, 2026, granting a refund of ₹20.57 crore to the company.
The resolution of a significant tax demand and the granting of a substantial refund will positively impact the company's financial position and reduce potential liabilities.
The income tax demand of ₹20.61 crore has been quashed, and a refund of ₹20.57 crore has been granted, which is a favorable outcome for the company.
Paradeep Phosphates Limited has received a significant update regarding a material litigation concerning income tax. Previously, the Assistant Commissioner of Income Tax, Circle -1(1), Bhubaneswar, had raised an additional tax demand of ₹20.61 crore for Assessment Year (AY) 2020-21 under Section 154 of the Income-tax Act, 1961. This demand was related to adjustments in carry-forward losses and MAT credit from earlier years.
The Company had filed an appeal before the First Appellate Authority on April 3, 2025. Subsequently, pending the disposal of the appeal, an application was filed under Section 154 of the Income-tax Act before the Assistant Commissioner of Income Tax. This application was disposed of on May 20, 2026, resulting in the Assistant Commissioner quashing the entire income tax demand of ₹20.61 crore and granting a refund of ₹20.57 crore to Paradeep Phosphates Limited.
This development is a positive outcome for the company, effectively resolving a substantial tax demand and securing a refund.
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Paradeep Phosphates Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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