Bharat Seats Limited has received favorable appellate orders from the Income Tax Department, providing significant relief on outstanding tax demands for multiple assessment years. The company informed stock exchanges about this development under Regulation 30 of SEBI listing regulations on April 1, 2026.

Tax Appeal Outcomes

The Income Tax Department's Office of the Commissioner of Income Tax (Appeals) in New Delhi issued appellate orders under section 250 of the Income Tax Act 1961. These orders cover assessment years 2014-15, 2015-16, 2016-17, and 2017-18, with the orders dated March 30, 2026, and received by the company on March 31, 2026.

Financial Impact

The appellate orders have resulted in substantial financial relief for Bharat Seats Limited. According to the company's disclosure, the outstanding tax demand for assessment years 2014-15 to 2017-18 will be reduced from Rs. 7.86 crores to nil following these favorable orders.

Outstanding Matters

While the company has received relief for the earlier assessment years, challenges remain for subsequent periods. The appeals against the balance demand of Rs. 14.57 crores covering assessment years 2018-19 to 2024-25 are still pending before the Commissioner of Income Tax (Appeals).

The company had previously communicated about these tax matters through intimations dated June 28, 2024, and April 1, 2025, indicating the total outstanding demand across all assessment years from 2014-15 to 2024-25 was Rs. 22.43 crores.

Regulatory Compliance

Bharat Seats Limited fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India Limited about the appellate orders. The communication was signed by Company Secretary and Compliance Officer Ritu Bakshi, ensuring proper regulatory compliance under the listing regulations.

Bharat Seats Limited has officially declared the results of its postal ballot process, confirming overwhelming shareholder approval for material related party transactions with Maruti Suzuki India Limited. The company's Chairman declared the results on March 13, 2026, based on the Scrutinizer's Report, with the resolution passing with requisite majority.

Official Declaration and Regulatory Compliance

The company submitted its formal declaration to both BSE Limited and National Stock Exchange of India Limited on March 13, 2026. The disclosure was signed by Company Secretary and Compliance Officer Ritu Bakshi (Membership No.: F3401) and submitted in compliance with regulatory requirements under SEBI LODR Regulations, 2015.

Postal Ballot Results and Shareholder Participation

The postal ballot witnessed exceptional shareholder support for the proposed resolution. A total of 237 shareholders participated in the voting process, casting 10,81,324 votes through the electronic voting platform with remarkable consensus.

E-Voting Process and Timeline

The remote e-voting facility was conducted through the National Securities Depository Limited (NSDL) platform. The comprehensive voting process spanned over a month to ensure maximum shareholder participation and regulatory compliance.

Category-wise Voting Analysis

The voting results demonstrated varied participation across different shareholder categories, with public non-institutional shareholders showing the highest engagement in the voting process.

Scrutinizer Oversight and Regulatory Framework

CS Rupinder Singh Bhatia, a practicing Company Secretary, served as the scrutinizer for the postal ballot process. The appointment was formalized during the Board meeting held on February 3, 2026, ensuring compliance with Sections 108 and 110 of the Companies Act, 2013, and relevant SEBI regulations. The scrutinizer's report dated March 13, 2026, confirmed that the voting process adhered to all regulatory requirements and was conducted transparently.

The approved ordinary resolution specifically addresses material related party transactions with Maruti Suzuki India Limited. Under SEBI LODR Regulations, 2015, particularly Regulation 23, only public shareholders' votes were considered for this resolution, explaining the promoter group's non-participation in the voting process. The Chairman's declaration marks the formal completion of the postal ballot process, enabling the company to proceed with the approved transactions.