ITAT deletes ₹4.38 Cr tax demand for Styrenix Performance Materials
Styrenix Performance Materials Ltd announced that the Income Tax Appellate Tribunal (ITAT), Ahmedabad, has deleted a tax demand of INR 4.38 crores for Assessment Year 2021-22. The tribunal's order, received on June 11, 2026, also set aside transfer pricing additions of INR 17,11,13,551, providing a positive financial impact by nullifying the liability arising from the October 29, 2024 assessment order.
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Styrenix Performance Materials Ltd has secured a favorable order from the Income Tax Appellate Tribunal (ITAT), Ahmedabad, which deleted a transfer pricing addition of INR 17,11,13,551 for Assessment Year 2021-22. The order, pronounced on May 26, 2026, and received by the company on June 11, 2026, consequently removes the corresponding tax demand of INR 4.38 crores. This decision provides a significant financial relief to the company by overturning the assessment order previously passed by the Income Tax Department.
The tribunal's decision addresses the appeal filed by the company against the assessment order dated October 29, 2024. The Assessing Unit had made the additions under section 143(3) read with section 144C (13) and section 144B of the Income Tax Act, 1961. By allowing the appeal, the ITAT has nullified these additions, thereby eliminating the tax liability that arose from them.
Details of the ITAT Order
The following table outlines the key particulars of the regulatory disclosure and the order passed by the authority:
| Sr No. | Particulars | Disclosure |
|---|---|---|
| 1 | Name of the authority | Income Tax Appellate Tribunal, Ahmedabad |
| 2 | Nature and details of the action | The ITAT allowed the company's appeal and deleted transfer pricing additions of INR 17,11,13,551 made by the Assessment Unit for AY 2021-22. The corresponding tax demand of INR 4.38 crores stands deleted. |
| 3 | Date of receipt of order | Order pronounced on May 26, 2026, signed on June 03, 2026, and received on June 11, 2026 |
| 4 | Details of violation | N.A. |
| 5 | Impact on financial activities | Positive Impact: Deletion of transfer pricing additions amounting to INR 17.11 crores and the corresponding tax demand of INR 4.38 crores. |
The company stated that the development results in a positive impact on its financials. The deletion of the tax demand and the underlying additions will improve the company's tax position for the specified assessment year. The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Styrenix Performance Materials
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.78% | -3.53% | -6.88% | +3.79% | -37.71% | +43.70% |
Will this favorable ITAT ruling set a precedent for Styrenix's pending transfer pricing disputes in other assessment years?
How does the company plan to utilize the liquidity saved from the deletion of the INR 4.38 crore tax demand?
Could this legal victory lead to a revision in Styrenix's future transfer pricing policies to avoid similar litigation?
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