Madras High Court Rejects Thangamayil Jewellery’s ₹70.18 Crore Tax Appeal for AY 2022-23

Thangamayil Jewellery Ltd has announced in an exchange filing that its writ petition challenging a tax demand of ₹70.18 crore has been dismissed by the Madras High Court’s Madurai Bench.

The petition was filed under Article 226 of the Constitution of India, contesting the notice of demand issued under Section 156 of the Income Tax Act, 1961, for the Assessment Year 2022-23.

Legal Challenge Against Tax Demand

Thangamayil Jewellery had approached the Honorable Madras High Court – Madurai Bench seeking relief against the income tax department’s demand for ₹70.18 crore.

The company had filed a writ petition, arguing against the validity of the notice issued under Section 156 of the Income Tax Act, which mandates taxpayers to clear outstanding dues within the stipulated period.

Madras High Court Ruling

On March 11, 2025, the single bench of the Madras High Court – Madurai Bench dismissed the company’s petition. The ruling implies that Thangamayil Jewellery will now have to comply with the income tax department’s demand unless further legal recourse is pursued.

Implications for Thangamayil Jewellery

The dismissal of the writ petition could have significant financial implications for Thangamayil Jewellery, which will now need to address the tax liability.

The company has yet to announce its next course of action regarding the ruling, whether it plans to appeal the decision before a higher bench or seek alternative legal remedies.

Stock Performance

On March 12, 2025, Thangamayil Jewellery share price ended 3.72% lower at ₹1,793.25. Thangamayil Jewellery’s share price reached a 52-week high of ₹2.558.06, and a 52-week low of ₹1,107.62. As per BSE, the total traded volume for the stock stood at 8,643 shares with a turnover of ₹1.55 crores.

At the current price, Thangamayil Jewellery shares are trading at a price-to-earnings (P/E) ratio of 42.58x, based on its trailing 12-month earnings per share (EPS) of ₹42.11, and a price-to-book (P/B) ratio of 9.54, according to exchange data.

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