United Breweries receives ₹100.83 crore tax refund for two assessment years
- United Breweries received ₹100.83 crore in total tax refunds for AY 2013-14 and AY 2020-21
- The refund includes ₹30.44 crore in interest components across both assessment years
- The inflow positively impacts working capital and adds to interest income in the P&L account
*this image is generated using AI for illustrative purposes only.
United Breweries Limited received a total tax refund of ₹100.83 crore from the Income Tax Department, marking a significant cash inflow for the brewer.
The refunds pertain to Assessment Years (AY) 2013-14 and 2020-21. The company disclosed the development in a filing to stock exchanges on October 6, 2026, citing compliance with SEBI Listing Regulations regarding the outcome of tax litigation.
Breakdown of Refund Amounts
The total amount comprises two distinct refunds determined by the Joint Commissioner of Income Tax following orders from the Income Tax Appellate Tribunal (ITAT).
| Assessment Year | Refund Amount | Interest Component | Date Received |
|---|---|---|---|
| AY 2013-14 | ₹82.73 crore | ₹25.65 crore | October 5, 2026 |
| AY 2020-21 | ₹18.10 crore | ₹4.79 crore | October 3, 2026 |
| Total | ₹100.83 crore | ₹30.44 crore | - |
Litigation Background
For AY 2013-14, the company’s return was selected for scrutiny, leading to an order under Section 143(3) of the Income Tax Act in October 2017 involving transfer pricing adjustments. The ITAT ruled partially in favor of the company in June 2022, remanding certain matters back to the Assessing Officer. The current refund stems from an order giving effect to that ITAT decision passed in January 2026.
Similarly, for AY 2020-21, corporate tax adjustments led to a scrutiny order in September 2022. The ITAT’s order in January 2024 resulted in a refund determination by the Assessing Officer in March 2026. The company has filed further appeals against specific adjustments in both cases, which remain pending adjudication before the High Court of Karnataka and other appellate forums.
What the Numbers Show
The interest component constitutes approximately 30% of the total refund amount (₹30.44 crore out of ₹100.83 crore). This indicates that a significant portion of the immediate financial benefit is derived from delayed payouts rather than just the reversal of principal tax demands. The company stated that this outcome has a positive impact on working capital and the profit and loss account through interest income.
Historical Stock Returns for United Breweries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.42% | -3.21% | -7.90% | -20.66% | -34.52% | -26.97% |
How will the pending High Court appeals in Karnataka potentially impact the final net financial benefit from these refunds?
What are the specific capital allocation plans for the ₹100.83 crore inflow, such as debt reduction or capacity expansion?
Does the resolution of AY 2013-14 transfer pricing disputes signal a reduced risk of similar tax liabilities in future assessment years?
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