Hindustan Unilever Limited (HUL) has disclosed that the Bombay High Court has dismissed its writ petition challenging a tax demand of ₹962.75 crore, including ₹329.33 crore in interest, raised by the Income Tax Department. The demand was based on the company’s alleged failure to deduct tax at source (TDS) during the acquisition of India HFD IPR from GlaxoSmithKline (GSK).
The court ruled that HUL must pursue an appeal against the Assessment Order issued in August 2024. However, the court granted HUL 15 days to file a stay application to prevent any immediate recovery of the demand. The court also allowed the company to retain its legal and factual contentions.
HUL has exercised its indemnification rights to recover the demand from GSK, and the company is evaluating further legal steps.