Panacea Biotec Limited has encountered a significant legal setback as the Commissioner of Income Tax (Appeals), New Delhi dismissed its appeals against penalty orders totaling ₹9.38 crore. The ruling, dated March 25, 2026 and received on March 26, 2026, represents an adverse development in the company's ongoing tax litigation proceedings.

Background of Tax Dispute

The penalty orders were originally issued on December 24, 2025, by the Assistant Commissioner of Income Tax, New Delhi, for alleged under-reporting of income. The dispute spans three assessment years, creating a comprehensive challenge to the company's tax compliance across multiple financial periods.

Company's Response and Next Steps

Panacea Biotec has maintained a firm stance against the penalty orders, asserting that the demand is not maintainable. The company's assessment indicates strong grounds for challenging the ruling at higher judicial levels. Following the dismissal by CIT(A), the pharmaceutical manufacturer is taking necessary steps to file an appeal with the appellate authority.

The company has emphasized its commitment to pursuing all available legal remedies to contest the penalty orders. This approach demonstrates the organization's confidence in its tax compliance practices and its willingness to defend its position through the judicial process.

Financial and Operational Impact Assessment

Despite the substantial penalty amount involved, Panacea Biotec has provided reassurance regarding the potential impact on its business operations. The company's management has stated that it does not envisage any relevant impact on financial, operational, or other activities of the organization.

Regulatory Compliance and Disclosure

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to maintaining transparency with stakeholders. This update follows the company's previous communication dated December 26, 2025, ensuring continuous information flow regarding the litigation proceedings.

The comprehensive disclosure includes all requisite details as mandated under SEBI regulations, reflecting the company's adherence to corporate governance standards. The filing was executed by Ankit Jain, General Manager – Legal & Company Secretary, on March 27, 2026, ensuring timely communication to both NSE and BSE.

Panacea biotec Limited has received positive developments in an ongoing tax litigation matter involving its wholly owned subsidiary. The company announced on March 11, 2026, that Panacea Biotec Pharma Limited (PBPL) received a favorable order from Maharashtra tax authorities, resulting in a significant reduction of the tax demand.

Tax Demand Reduction Details

The Deputy Commissioner of State Tax, Maharashtra, issued an order dated March 10, 2026, addressing PBPL's appeal filed in May 2025. The appeal was against a demand order originally issued by the Adjudicating Officer in Financial Year 2024-25.

Background of Tax Litigation

The original tax demand pertained to alleged excess or ineligible Input Tax Credit and other tax liabilities. The demand included tax, interest, and penalty components totaling ₹1.58 crore. PBPL had filed an appeal in May 2025 challenging this demand order.

Company's Position and Next Steps

Despite the favorable reduction, Panacea Biotec maintains its position that the revised demand of ₹0.81 crore is not maintainable. Based on internal assessment, the company has decided to pursue further legal remedies:

• PBPL is taking necessary steps to file an appeal with the appellate authority
• The company is challenging the revised order through proper legal channels
• All required documentation and procedures are being followed

Impact Assessment

Panacea Biotec has stated that it does not envisage any relevant impact on the financial, operational, or other activities of the company or PBPL from this matter. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance

The announcement was made in compliance with SEBI regulations, with detailed information provided to both NSE and BSE. The company has fulfilled all disclosure requirements under the applicable regulations and master circulars issued by SEBI.