LG Electronics Wins Favorable ITAT Ruling, Deleting INR 1,305 Crores in Tax Additions
LG Electronics India Ltd has received a favorable order from the Income Tax Appellate Tribunal (ITAT) concerning tax matters spanning five financial years. The decision pertains to disputes over income tax assessments and results in the deletion of significant additions related to Transfer Pricing and Corporate Income Tax for the company.The ITAT order, received on July 29, 2026, covers appeals filed by LG Electronics India Limited relating to Financial Years (FY) 2014-15, 2016-17, 2017-18, 2019-20, and 2021-22.
According to the details provided, the ITAT has completely deleted all additions related to both Transfer Pricing and Corporate Income Tax in these cases. The deletions relate to assessments made under sections 143(3) / 144C (13) of the Income Tax Act, 1961.
The order specifically noted that the additions amounting to approximately INR 1,305 Crores were deleted. This deletion concerning Transfer Pricing was based on the Advance Pricing Agreement (APA) signed by the Company on January 5, 2026. Corporate Tax additions were also deleted following earlier ITAT orders in related matters.
Key details of the tax dispute resolution are summarized below:
| Financial Years Covered | Total Deleted Additions | Basis for Deletion |
|---|---|---|
| FY 2014-15, 2016-17, 2017-18, 2019-20, 2021-22 | Approximately INR 1,305 Crores | Transfer Pricing (based on APA signed Jan 5, 2026) and Corporate Income Tax (on merits). |
While the ITAT decision is in favor of LG Electronics India Ltd and deletes outstanding Tax demands, the Company noted that there was no adverse impact on its financial or operational activities. The Assessing Officer has yet to issue an Order Giving Effect to the ITAT Order. Furthermore, the company highlighted that the Income Tax Department may prefer to appeal the Corporate Tax issues before the Hon'ble High Court.
LGEINDIA Stock Price Movement
As of 11:24 AM, shares of LG Electronics India Limited are shedding value, trading down 1.26% to ₹1499 in the live market. The stock saw notable activity with 56,750 shares traded so far into the session.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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