Sapphire Foods India Limited Wins Income Tax Appellate Tribunal Case, Interest Liability Reduced to ₹25.13 Lakh
Sapphire Foods India Limited received a favorable order from the Income Tax Appellate Tribunal (ITAT) on November 7, 2025. The final interest liability under Section 201(1A) has been reduced to ₹25.13 lakh, down from ₹17.04 crore. This follows an earlier order from the Commissioner of Income Tax.
The reduction in interest liability from ₹17.04 crore to ₹25.13 lakh is financially significant for the company, positively impacting its bottom line.
The company has won a significant legal battle with the Income Tax Appellate Tribunal, leading to a substantial reduction in its interest liability.
Sapphire Foods India Limited has received an Order Giving Effect (OGE) from the Assistant Commissioner of Income Tax, OSD TDS Circle 2(2), Mumbai, dated 30th December 2025. This order is in consequence to the Income Tax Appellate Tribunal (ITAT), Mumbai's pronouncement on 7th November 2025, which ruled in favor of the company.
The ITAT order stated that the interest under Section 201(1A) of the Income Tax Act, 1961, is restricted only up to the date of actual payment of tax.
The OGE, issued for the period covering AY 2016-17 and AY 2018-19 to AY 2023-24, consequently reduced the final interest liability under Section 201(1A) to ₹25,13,273. This is a significant reduction from the earlier TDS liability under Section 201(1) (1A) which was ₹17,04,10,490.
This disclosure is made in furtherance to the company's intimation letter dated 26th June 2025 regarding the receipt of an order under Section 250 from the Office of the Commissioner of Income Tax, Appeal Addl/JCIT(A), Ranchi. The company has filed an appeal at the ITAT, Mumbai.
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