Supreme Court dismisses Rs 186 Crore tax demand against Patanjali Foods

Patanjali Foods Ltd. has received a favorable ruling from the Supreme Court of India, which dismissed a Rs 186 crore tax demand raised by the Income Tax Department for the pre-Corporate Insolvency Resolution Process (CIRP) period.

The Principal Commissioner of Income Tax Central 4 had filed a Special Leave Petition (SLP) challenging the Bombay High Court’s earlier decision that quashed the tax demand. However, on January 15, 2025, the Supreme Court upheld the High Court's verdict, rejecting the Income Tax Department’s plea.

In an official statement, Patanjali Foods confirmed that the ruling completely nullifies the tax claim, ensuring that the company faces no further financial liability on the matter. "The demands of Rs. 186 crores for pre–Corporate Insolvency Resolution process (CIRP) period raised by Income Tax Deptt. has been quashed by Hon’ble Supreme Court of India," the FMCG brand stated.

The tax demand, initially raised for multiple assessment years, had previously been struck down by the National Company Law Tribunal (NCLT), a decision that was later affirmed by the Bombay High Court. Despite the Income Tax Department’s attempt to reinstate the claim through the SLP, the Supreme Court’s dismissal brings the matter to a final conclusion.

Patanjali Foods also stated that they had not received any formal notice regarding the hearing and only became aware of the Supreme Court’s verdict through a tax-related website on February 18, 2025.