Mukka Proteins has secured partial relief in its tax appeal for Assessment Year 2018-19, with the Commissioner of Income Tax (Appeals)-2, Panaji, deleting additions totaling ₹8.08 crore while sustaining a demand of ₹7.55 crore. The appellate order, dated June 30, 2026, addressed disputes arising from an assessment completed under Section 143(3) read with Section 263 of the Income-tax Act, 1961. The order reduces the company's disputed tax liability, though a significant addition remains subject to a higher effective tax rate.

The litigation involved the Assistant Commissioner of Income Tax, Central Circle-1, Mangalore, who had originally made additions totaling ₹15.63 crore. This comprised an alleged excess stock of ₹11.14 crore and prior period income of ₹4.48 crore. The company filed an appeal against these additions, leading to the recent order which provides relief on specific components of the demand.

Breakdown of the Appellate Order

The Commissioner of Income Tax (Appeals) partly allowed the appeal, providing relief on two key counts. The addition of prior period income amounting to ₹4.48 crore was deleted after the authority held that the income had already been offered to tax in earlier assessment years. Additionally, out of the total alleged excess stock of ₹11.14 crore, an addition of ₹3.60 crore was deleted.

However, the addition relating to alleged excess stock amounting to ₹7.55 crore has been sustained. This amount is assessed under the special tax rate prescribed under Section 115BBE of the Income-tax Act, which carries an effective rate of 78%. The company stated that it has already discharged the tax liability on this amount at the normal tax rate, which has an effective rate of 34.944%.

Financial Implications and Next Steps

Pursuant to the appellate order, the company has secured a reduction in the taxable demand by ₹8.08 crore. The consequential tax impact will be determined in accordance with the provisions of the Income-tax Act, 1961. The sustained addition of ₹7.55 crore under Section 115BBE remains a point of contention, given the higher effective tax rate applicable to such income.

Mukka Proteins is currently evaluating the appellate order to understand its full financial implications. The company indicated that it is considering appropriate legal remedies available under the law to address the sustained addition. The intimation was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Mukka Proteins Ltd has announced a delay in its acquisition of Mukka Proteins Vietnam Co., Ltd., pushing the revised completion date to 31 December 2026. The company attributed the postponement to delays in securing necessary regulatory approvals in Vietnam. This development impacts the proposed purchase of a 70% stake in the target entity through share transfer.

The acquisition was initially expected to be completed by 30 June 2026. The company had previously submitted intimations regarding this transaction on 26 July 2025, 4 August 2025, and 31 December 2025 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The total consideration for the acquisition does not exceed ₹10,00,000. Mukka Proteins stated that all necessary steps are being taken to address the delays and complete the acquisition in due course.

Acquisition Details