Jyothy Labs Limited has announced that a tax demand of ₹110.64 crore, including ₹21.84 crore in interest, has been nullified following a rectification by the Income Tax Department. The demand was initially raised on March 30, 2026, under Section 143(3) of the Income-tax Act, 1961, for the assessment year 2024-25.
The rectification order, issued on the same date under Section 154, addressed computational errors and granted appropriate credit for taxes already paid by the company. As a result, the demand was revised to nil. The initial demand arose from prima facie computational errors and recurring issues that had previously been resolved in Jyothy Labs‘ favour by the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals).
Despite the rectification, Jyothy Labs is in the process of filing an appeal against the order, as it pertains to recurring issues previously addressed. The company has stated that it does not anticipate any material impact on its financials, operations, or other activities due to the order.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).