The Bombay High Court has quashed a Rs. 25185.51 crores income tax demand notice issued to Tata Steel for FY 2018-19. The order provided a big relief to the company. The company has formally informed both BSE and NSE about the development.
The notice was issued by the Deputy Commissioner of Income Tax, Mumbai, for reassessing Tata Steel’s taxable income and raising an additional demand of nearly Rs. 25000 crores. Tata Steel moved to the High Court against the demand notice and challenged that the notice was invalid as it was issued by a Jurisdictional Assessing Officer rather than through the faceless assessment mechanism, which is statutorily mandatory. The Court agreed with the company’s contention and held the reassessment proceedings to be legally unsustainable.
Also Read: Tata Steel Receives Rs. 1000 Crore GST Notice Over Alleged Irregular Tax Credit

The Case Could be Reconsidered Later
While quashing the notice and related proceedings, the High Court mentioned precedents and highlighted that reassessments must strictly follow the statutory framework. The Court also observed that if the Income Tax Department decides to revive the matter in future, the merits of various legal arguments raised by Tata Steel could be re-examined. For now, the ruling marks a decisive relief for the steelmaker company in one of the largest tax disputes in recent years.
Also Read: Odisha High Court Stayed Action Against Tata Steel in Sukinda Mining Dispute of Rs. 1902 Crores
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