ITAT Dismisses Appeals, Dismissing Tax Demand in Cases of Interest Payments
Fusion Finance Limited, formerly known as Fusion Micro Finance Limited, announced that the Income Tax Appellate Tribunal (ITAT), New Delhi, has dismissed appeals filed by the Income Tax Officer (ITO). The orders concern assessments for the financial years 2020-21 and 2021-22, regarding tax deductions on interest payments made to foreign Non-Convertible Debenture (NCD) holders.The dispute centers on the alleged non-deduction or lower deduction of tax on interest payments. It was alleged that the interest payment should attract tax withholding at 20% plus cess and surcharge under Section 196D read with Section 115AD of the Act, instead of the tax already withheld at 5% plus cess and surcharge under Section 194LD of the Act.
Assessment Details
The ITAT passed orders dismissing the appeals filed by the ITO. The company provided details of these dismissals for two separate assessment years:AY 2020-21 (Annexure A)
| Detail | Value |
|---|---|
| Total Demand Dismissed | Rs. 16,62,03,454/- |
| Total Tax Liability | Rs. 9,54,65,663/- |
| Total Interest Liability | Rs. 7,07,37,791/- |
AY 2021-22 (Annexure B)
| Detail | Value |
|---|---|
| Total Demand Dismissed | Rs. 11,18,43,066/- |
| Total Tax Liability | Rs. 7,10,23,805/- |
| Total Interest Liability | Rs. 4,08,19,261/- |
In both cases, the tribunal's ruling dismissed the appeal filed by the ITO, which challenged previous orders passed by CIT(A) u/s 250 of the Act.
Operational Impact
According to the company, the dismissal of the appeals results in no impact on the financials, operations, or other activities of the listed entity.The company explained that it became aware of the orders, received on May 29, 2026, through a routine review of communication issued on the ITAT website, rather than receiving intimation via email.
FUSION Stock Price Movement
On Tuesday, Fusion Finance Limited shares edged higher to settle at ₹174.63, representing a solid 2.68% gain for the day. Trading volume was robust during the session, recording 282,939 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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