Dabur gets relief as ITAT quashes Rs 59.37 crore tax demand

FMCG major Dabur Ltd on Wednesday said the Income Tax Appellate Tribunal (ITAT) has quashed a tax demand of Rs 59.37 crore, raised earlier by authorities under Section 263 of the Income Tax Act, 1961. Following the tribunal’s decision, the remaining tax demand now stands at Rs 50.96 crore, for which the company has already filed an appeal before the Commissioner of Income Tax (Appeals).

“The financial implication in the matter is unlikely. Any impact, if at all, will be limited to the final tax liability as determined by higher appellate authorities,” the company said in its filing.

In its latest quarterly performance, Dabur reported consolidated revenue of Rs 3,191 crore, up 5.4% year-on-year, despite transitional GST challenges and economic volatility. Net profit rose 6.5% to Rs 453 crore, compared to Rs 425 crore in the same period last year.

The company’s international business grew 7.7% YoY, led by strong performances in the UK (48%), Turkey (18%), Dubai (17%), and the US and Bangladesh (16% each).

Looking ahead, CEO Mohit Malhotra said Dabur will continue investing in premiumisation, digital transformation and distribution expansion, calling them the “three pillars that will define the next chapter of our journey.”