Mumbai, 07.04.2025: Tata Steel has said it is confident about its legal position after receiving a tax reassessment order for the financial year 2018–19. The order, issued on March 31, asks the company to pay taxes on over ₹25,000 crore more income. This came after the Income Tax Department sent a notice on March 13 asking for more details about a large debt waiver that happened in that year.
The debt in question, worth ₹25,185.51 crore, was waived as part of the resolution process when Tata Steel acquired Bhushan Steel (later renamed Tata Steel BSL) under the Insolvency and Bankruptcy Code (IBC). Tata Steel says this kind of debt waiver should not be counted as taxable income, as it was part of a legal takeover process approved under Indian law. The company also noted that the tax return for Bhushan Steel for that year was already accepted by the tax department in 2020, with no objections raised at the time.
Before the reassessment order was issued, Tata Steel had already filed a writ petition in the Bombay High Court on March 24. The company is challenging what it calls “technical mistakes” made during the reassessment process. It says the order has serious flaws in how it was carried out and believes it was not handled properly.
In addition to the petition, Tata Steel plans to take further legal action through other courts or tribunals. It said it is ready to fight the reassessment both on legal grounds and on the facts of the case. The company believes it has a strong case and is committed to protecting its interests.
