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.
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.
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.
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.
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.
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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.
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.
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Published on: Jul 30, 2026, 2:31 PM IST
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