Patanjali Foods has announced that the Supreme Court of India has dismissed a Special Leave Petition (SLP) filed by the Principal Commissioner of Income Tax Central 4, quashing a ₹186 crore tax demand related to pre-Corporate Insolvency Resolution Process (CIRP) periods.
The ruling upholds the earlier decision of the Bombay High Court, which had rejected the Income Tax Department’s demand against the FMCG company.
In a statement, Patanjali Foods confirmed that the tax demand for pre-CIRP periods had been nullified by the Supreme Court, ensuring that the company faces no further financial liability in this matter.
The tax demand of ₹186 crore was originally raised by the Income Tax Department for multiple assessment years before Patanjali Foods underwent the Corporate Insolvency Resolution Process (CIRP). The National Company Law Tribunal (NCLT) had earlier quashed the tax claim, a decision that was later upheld by the Bombay High Court.
Despite these rulings, the Income Tax Department challenged the decision in the Supreme Court by filing an SLP, seeking a reversal of the High Court’s verdict. However, the Supreme Court, in its judgment on January 15, 2025, ruled in favour of Patanjali Foods and dismissed the tax authority’s appeal.
Patanjali Foods stated that it was not notified about the hearing and only became aware of the Supreme Court’s decision on February 18, 2025, through a tax-related website.
With this ruling, Patanjali Foods is now free from any financial obligations related to the ₹186 crore tax demand, and no further legal proceedings are expected. The company emphasized that this decision provides legal clarity and further strengthens its financial standing.
On February 20, 2025, Patanjali Foods share price traded 1.05% higher at ₹1,846.35 at 9:25 AM (IST). Patanjali Foods’s share price reached a 52-week high of ₹2,030, and a 52-week low of ₹1,170.10. As per BSE, the total traded volume for the stock stood at 4720 shares with a turnover of ₹86.72 lakhs.
At the current price, Patanjali Foods shares are trading at a price-to-earnings (P/E) ratio of 58.17x, based on its trailing 12-month earnings per share (EPS) of ₹31.74, and a price-to-book (P/B) ratio of 6.17, according to exchange data.
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Published on: Feb 20, 2025, 9:32 AM IST
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