LG Electronics India Limited received a favorable order from the Income Tax Appellate Tribunal (ITAT) on July 29, 2026, which deleted tax additions totaling approximately INR 1,305 Crores. The ruling resolves disputes spanning five financial years — FY 2014-15, FY 2016-17, FY 2017-18, FY 2019-20, and FY 2021-22 — covering both Transfer Pricing and Corporate Income Tax matters. This outcome eliminates outstanding tax demands against the company, providing clarity on its tax liabilities for these periods.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Anuj Goyal, Company Secretary and Compliance Officer, signed the intimation to the National Stock Exchange of India Limited and BSE Limited on July 30, 2026. The ITAT Delhi bench passed the appeal order after reviewing the company’s challenges to the Income Tax Assessment Orders issued under Section 143(3) and Section 144C(13) of the Income Tax Act, 1961, following directions from the Dispute Resolution Panel.

Key Details of the ITAT Order

The tribunal’s decision addresses two primary categories of tax additions: Transfer Pricing and Corporate Income Tax. The deletions were based on distinct grounds for each category, reflecting the specific nature of the disputes raised by the assessing officer.

The Transfer Pricing additions were deleted in consideration of the Advance Pricing Agreement (APA) executed by the company on January 5, 2026. This agreement provides certainty regarding the pricing policies for international transactions, thereby neutralizing the additions made by the tax authorities. For the Corporate Income Tax additions, the ITAT ruled in favor of the company on the merits of the case, relying on precedents set by its own orders in earlier years concerning identical issues.

Procedural Status and Future Risks

While the ITAT order is final at the tribunal level, the administrative process is not yet complete. The Assessing Officer has yet to issue the "Order Giving Effect to ITAT Order," a mandatory procedural step required to formally adjust the tax records and reflect the deletion of demands. Until this order is issued, the legal closure of these assessment years remains pending at the departmental level.

LG Electronics India stated that there is no adverse impact on its financial or operational activities due to this decision. However, the company noted that the Income Tax Department retains the right to prefer an appeal against the Corporate Income Tax aspects of the ruling before the Hon’ble High Court. Such an appeal would introduce further litigation risk specifically related to the corporate tax issues, distinct from the transfer pricing matters which are now settled under the APA framework.

What the Numbers Show

The deletion of approximately INR 1,305 Crores in tax additions represents a significant reduction in contingent liabilities for LG Electronics India. By resolving these matters through the ITAT, the company avoids potential cash outflows associated with disputed tax demands. The reliance on the APA for transfer pricing issues suggests a strategic shift towards certainty-based tax compliance, reducing future volatility in this area. The continued risk of High Court appeals on corporate tax matters indicates that while the immediate financial threat is removed, legal exposure persists until the appellate process concludes.

LG Electronics India Limited has voluntarily submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 to the stock exchanges, underscoring its commitment to transparency and responsible corporate governance. The report was filed pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. While BRSR preparation was not mandatory for the company for FY 2025-26—given that it was listed during the year—the company opted to prepare and disclose the report voluntarily. The BRSR also forms an integral part of the company's Annual Report for FY 2025-26.

Company Overview and Business Operations

LG Electronics India Limited, incorporated on 20 January 1997, is listed on both the National Stock Exchange of India Limited and BSE Limited. The company's paid-up capital stands at ₹6,78,77,23,920. Its business activities are split between manufacturing (89% of turnover) and trading (11% of turnover), covering products such as refrigerators, air conditioners, televisions, washing machines, microwave ovens, water purifiers, air purifiers, and compressors. The company operates 2 manufacturing plants and 49 offices across India, serving customers pan-India and exporting to 50+ countries. Exports contributed 5.65% of total turnover during FY 2025-26.

The following table summarises key CSR-related financial metrics for FY 2025-26:

Workforce Composition and Employee Well-Being

As at the end of FY 2025-26, the company employed a total of 3,238 employees and 4,430 workers. The workforce is predominantly male, with women comprising 7.5% of total employees and 3% of total workers. The company reported a permanent employee turnover rate of 12.19% (total) for FY 2025-26, compared to 13.67% in FY 2024-25. Permanent worker turnover stood at 0.93% for FY 2025-26, unchanged from FY 2024-25.

All permanent employees received 100% coverage under health insurance, accident insurance, and maternity benefits. The Board of Directors comprised 6 members, of whom 1 (16.66%) was female. Among Key Management Personnel, 3 positions were held, with no female representation. The median remuneration for male Board members was ₹60,40,000, while the sole female Board member received ₹40,30,000. Gross wages paid to females as a percentage of total wages stood at 3.53% in FY 2025-26, compared to 3.6% in FY 2024-25.

Environmental Performance

The company's total energy consumption for FY 2025-26 was 3,80,260.98 Giga Joules, compared to 3,38,910.69 Giga Joules in FY 2024-25. Renewable energy sources contributed 1,222.97 Giga Joules, while non-renewable sources accounted for 3,79,038.00 Giga Joules. Total water consumption was 4,54,215 kilolitres in FY 2025-26, down from 5,57,013 kilolitres in FY 2024-25. The company has implemented a Zero Liquid Discharge mechanism, with 100% of treated water reused within the compound boundary.

NOx emissions declined to 5.580 MT in FY 2025-26 from 7.164 MT in FY 2024-25, while SOx emissions fell to 0.782 MT from 1.492 MT. The company holds UL-Zero Waste to Landfill certification and has implemented solar power systems at its Noida facilities as part of its renewable energy transition. Manufacturing plants at Ranjangaon (Pune) and Greater Noida are compliant with applicable environmental approvals.

Health, Safety, and Human Rights

The company reported a Lost Time Injury Frequency Rate (LTIFR) of 0.09 per one million person-hours worked for employees in FY 2025-26, consistent with FY 2024-25. There were zero fatalities and zero high-consequence work-related injuries for both employees and workers in both years. A total of 1 sexual harassment complaint was filed under the POSH Act during FY 2025-26 (down from 2 in FY 2024-25), and all complaints were closed with 0 upheld. The company reported nil instances of discrimination, child labour, forced labour, or wage-related complaints in FY 2025-26.

All 3,238 employees and 4,430 workers received 100% coverage under human rights training during FY 2025-26. The company's occupational health and safety management system is certified to ISO 45001 and covers employees, workers, contractors, and relevant workplace activities.

CSR and Stakeholder Engagement

CSR is applicable to LG Electronics India under Section 135 of the Companies Act, 2013. The company's CSR initiatives during FY 2025-26 benefitted over 1,20,000 persons through its Nutrition Program, 1,200 through the LG Hope Technical Skill Academy, and 1,600 through the CSR Retail Skills Training Program—with 100% of beneficiaries from vulnerable and marginalized groups across all three programmes. Input materials sourced directly from MSMEs and small producers accounted for 17.39% of total inputs by value in FY 2025-26, up from 16.28% in FY 2024-25. Domestic sourcing stood at 53.67% in FY 2025-26, compared to 52.23% in FY 2024-25. Customer complaints received during FY 2025-26 totalled 85,715, compared to 71,743 in FY 2024-25, with no pending complaints at year-end. Shareholder complaints stood at 100 filed during FY 2025-26, with 1 pending at year-end. The company is affiliated with 7 national trade and industry associations, including CEAMA, RAMA, and MAIT, and reported no instances of anti-competitive conduct, corruption, or data breaches during the reporting period.