The Income Tax Department has filed appeals before the Bombay High Court challenging an order by the Income Tax Appellate Tribunal (ITAT) that previously granted relief to Cummins India Limited . The appeals concern adjustments amounting to INR 210.77 crores, with the company estimating a potential tax impact of approximately INR 72.88 crores should the department's challenge succeed.

The company disclosed that it became aware of the appeals on July 8, 2026, through a communication from its Advocate-on-Record and information available on the Bombay High Court's website. Formal intimation or copies of the appeal papers from the court or the Income Tax Department are still awaited. The appeals are currently pending for admission before the Bombay High Court.

Background of the dispute

The ITAT had earlier decided the matter in favour of Cummins India, granting relief regarding the tax adjustments. The current appeals by the Income Tax Department contest this favourable order. The company stated that it is making the disclosure based on the ITAT order and the information presently available.

Financial implications and status

The dispute involves significant financial exposure for the company. The table below outlines the key details of the litigation and its potential impact.

Cummins India has indicated that any further submissions or updates will be made upon receipt and review of the detailed appeal papers. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Truist Securities analyst Jamie Cook has maintained a Buy rating on Cummins and increased the price target to $901 from the previous $815. The adjustment reflects a revised outlook on the company's stock performance.

Rating and Price Target

The research note reaffirms the positive stance on Cummins, signaling confidence in its future growth trajectory. The new price target of $901 represents a significant increase from the prior target of $815.