Tata Steel Challenges Rs 25,000 Crore Tax Reassessment in High Court

Tata Steel has challenged a tax reassessment order that increases its taxable income by Rs 25,000 crore for the fiscal year 2018-19. The company has filed a writ petition in the Bombay High Court, citing technical flaws and arguing that the debt waiver should not be taxable.

Tata Steel is contesting a tax reassessment order that has inflated its taxable income for the fiscal year 2018-19 by more than Rs 25,000 crore. The company filed a writ petition with the Bombay High Court against the reassessment, claiming procedural deficiencies.

The issue stems from a show-cause notice issued on March 13 by the Deputy Commissioner of Income Tax, Circle 2(3)(1), Mumbai. The notice requested further documentation regarding the waiver of Rs 25,185.51 crore in FY19.

Tata Steel argues that the debt waiver, subsequent to its acquisition of Bhushan Steel, shouldn't be taxed. They are also exploring additional legal remedies to contest the reassessment order vigorously.

(With inputs from agencies.)