MRF Limited Reports Significant Reduction in Tax Demands Following Tribunal Orders
MRF Limited has provided updates on two ongoing tax litigations filed with the Income Tax Appellate Tribunal. In both cases, favorable rulings have led to a substantial reduction in the respective tax demands.The tax disputes involve the Income Tax Authority, specifically the Deputy Commissioner of Income-Tax, Central Circle 3(3), Chennai. The company reported developments in litigations concerning Assessment Year 2015-16 and Assessment Year 2016-17.
For the dispute related to the Assessment Year 2015-16, the litigation was initiated on March 15, 2024. This case involved an appeal filed with the Income Tax Appellate Tribunal concerning the disallowance of claims, with an initial amount involved of Rs. 89.62 crores. The Tribunal's decision restored the remaining matters back to the Assessing Officer for fresh verification. Consequently, the tax demand associated with this case has been reduced to Nil.
A separate litigation concerning the Assessment Year 2016-17 was initiated on March 26, 2024. This appeal also related to the disallowance of claims and involved an amount of Rs. 92.46 crores. Similar to the first dispute, the Income Tax Appellate Tribunal allowed the company's appeal on major appeal grounds and restored the remaining matters back to the Assessing Officer for fresh verification. Following this Tribunal order, the tax demand has also been reduced to Nil.
The following table summarizes the details of the two litigations and their respective outcomes:
| Assessment Year | Date of Litigation Initiation | Amount Involved | Key Development/Update |
|---|---|---|---|
| 2015-16 | 15-03-2024 | Rs. 89.62 crores | Tribunal restored matters to Assessing Officer; tax demand reduced to Nil. |
| 2016-17 | 26-03-2024 | Rs. 92.46 crores | Tribunal restored matters to Assessing Officer; tax demand reduced to Nil. |
MRF Stock Price Movement
MRF Limited shares settled lower today, shedding 1.09% after closing at ₹128910. Trading volume reached 4,534 shares, as the stock saw a daily swing between a low of ₹128620 and a high of ₹130500.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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