IRFC Share Price in Focus as Madras High Court Sets Aside ₹353.18 Crore Tax Demand Order

Indian Railway Finance Corporation (IRFC) has received relief from the Madras High Court after the court set aside a tax demand of ₹353.18 crore raised by the Assistant Commissioner (State Tax), Chennai, as per an exchange filing dated July 30, 2026.  

The order also cancels the recovery notice issued in the case and sends the matter back to the tax department for a fresh review. The company received the court's order on 29 July 2026 after it was passed on 27 July 2026.  

Dispute Centres on Unclaimed ITC 

The tax proceedings relate to Input Tax Credit (ITC) reflected in GSTR-2A but not claimed by IRFC. The state tax department treated the unclaimed credit as lapsed and raised a demand of ₹353.18 crore.  

Following the High Court's decision, that demand no longer remains in force and will now be examined again by the tax authority.  

Fresh Order to Be Issued After Hearing 

The High Court has directed the Assistant Commissioner (State Tax) to reconsider the case after giving IRFC a reasonable opportunity to present its submissions. The company is also to be given a personal hearing before any decision is taken.  

The court has asked the authority to complete the exercise and issue a fresh order within three months from receiving the judgment.  

Matter Returns to Tax Authorities 

The High Court's order does not settle the tax dispute. Instead, it requires the state tax department to review the matter again after following the process laid down by the court. The outcome will depend on the fresh assessment and the order issued after considering IRFC's submissions. 

Company Informs Stock Exchanges 

IRFC disclosed the development to the NSE and BSE through a regulatory filing dated 30 July 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.  

The filing stated that there are no related legal proceedings involving the company's key management personnel or promoters. It also confirmed that no settlement has been reached in the matter.  

Read More: SBI Raises ₹4,691 Crore Through AT1 Bonds at 7.75% Coupon Rate! 

Indian Railway Finance Corporation (IRFC) Share Price Performance  

As of July 30, 2026, 12:39 pm, Indian Railway Finance Corporation (IRFC) share price was trading at ₹88.61, down 0.58% from the previous closing price. 

Conclusion 

IRFC's tax dispute will now be reconsidered after the Madras High Court cancelled the existing demand and recovery notice. The reassessment will follow a fresh hearing and the timeline set by the court. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Looking to invest? Open a Demat Account with Angel One and start trading seamlessly.