Sasken Technologies' Contingent Liability Reduced by ₹4.50 Crore Following ITAT Ruling
Sasken Technologies Limited has received a significant update regarding its tax litigation, with an order from the ITAT Bangalore resulting in a reduction of contingent liabilities across two Assessment Years (AY). The decision pertains to appeals ITA Nos. 2057 and 2058/Bang/2025, covering AY 2017-18 and AY 2020-21.The ITAT Bangalore issued the order, which was received by the company on July 1, 2026. The ruling addressed the applicability of TDS (Tax Deducted at Source) on certain payments made by the company's overseas branches.
Key findings from the ITAT include the deletion of disallowances under Sections 14A and 80G, as the tribunal held that no TDS was applicable on payments made by the overseas branches. However, the ITAT did sustain the disallowance concerning a payment of ₹7 lakh made to a UK resident.
The favorable outcome significantly impacts Sasken Technologies' financial position. The company expects to receive refunds from the Income-tax Department corresponding to these adjustments.
The reduction in contingent liability and expected refund amounts are detailed below:
| Assessment Year (AY) | Contingent Liability Reduction | Expected Refund Source |
|---|---|---|
| 2017-18 | Approximately ₹4.50 crore | Income-tax Department |
| 2020-21 | Approximately ₹0.58 crore | Income-tax Department |
The ITAT order provides clarity on the tax treatment of payments made by offshore branches, while the remaining dispute centers around the disallowance of a specific payment to a UK resident.
SASKEN Stock Price Movement
Shares of Sasken Technologies Limited today slipped by 4.96% to settle at ₹2159.40, as the stock shed over ₹112 during post-market trading. The security was actively traded a volume of 98,472 shares throughout 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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