Tata Steel shares fell by 9% after the company received a reassessment order from the Income Tax Department, increasing its taxable income for FY 2018-19 by over ₹25,000 crore. The reassessment stems from a show cause notice issued on March 13, 2025, regarding the waiver of ₹25,185.51 crore in the financial year 2018-19.
The reassessment pertains to the acquisition of Bhushan Steel Limited (now Tata Steel BSL Limited) through insolvency proceedings in May 2018. The tax authorities are questioning the tax implications of the debt waiver during the acquisition.
In a regulatory filing, Tata Steel disclosed that the assessment order was issued on March 31, 2025. The company has responded by filing a writ petition with the Bombay High Court on March 24, challenging the reassessment proceedings due to “technical infirmities.”
Tata Steel maintains that the reassessment process is flawed and believes it has a strong legal basis to contest the order. The company has reassured stakeholders that it is taking all necessary legal steps to protect its interests.
Tata Steel shares opened at ₹128.00, hitting a high of ₹129.51 and a low of ₹125.37 during the session. The stock is trading close to its 52-week low of ₹122.62, far below its 52-week high of ₹184.60
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
