Patanjali Foods Limited has clarified that the Supreme Court has dismissed the Special Leave Petition (SLP) filed by the Principal Commissioner of Income Tax (Central 4) against the company regarding pre-Corporate Insolvency Resolution Process (CIRP) tax demands amounting to ₹186 crore.
In a regulatory filing on February 19, 2025, Patanjali Foods stated that the SLP was filed by the Income Tax Department against an earlier Bombay High Court ruling, which had quashed the tax department’s demands. However, the Supreme Court dismissed the SLP on January 15, 2025, without serving a notice of hearing to Patanjali Foods. The company only became aware of the ruling when it was posted on the website taxmann.com on February 18, 2025.
The case pertains to demands raised by the Income Tax Department for multiple assessment years prior to the approval of the company’s resolution plan by the National Company Law Tribunal (NCLT). The NCLT had earlier quashed these demands, following which the tax department challenged the decision in the Bombay High Court. However, the High Court ruled in favor of Patanjali Foods, stating that once a resolution plan is approved under the Insolvency and Bankruptcy Code (IBC), all claims of governmental authorities, including income tax dues, stand fully and finally settled.
The Supreme Court’s dismissal of the tax department’s appeal now brings finality to the matter, confirming that the company is not liable to pay the ₹186 crore demand.
Patanjali Foods has stated that the ruling has no financial implications on the company and that the tax claims stand quashed under the IBC framework.
The company also assured investors that the matter has been resolved in its favor, eliminating any potential liability or penalty arising from the tax dispute.
