United Foodbrands Limited has secured a significant financial relief after the Deputy Commissioner of Income Tax, Bengaluru, reduced a tax demand of ₹8.63 crores to nil for Assessment Year 2023-24. The Rectification Order, issued on June 16, 2026, under Section 154 of the Income Tax Act, 1961, nullifies the previous demand and interest liabilities. This decision follows the company's application for rectification of the Assessment Order and Notice of Demand issued under Section 143(3) and Section 156 respectively.

The communication confirms that the company is no longer liable to pay the tax or interest previously demanded. While the primary demand has been quashed, the company disclosed that it is in the process of filing an appeal against a separate addition to income amounting to ₹2.78 crores. This addition pertains to a transfer pricing adjustment made by the Assessing Officer under Section 92CA(3) of the Income Tax Act, 1961.

No penalties or restrictions have been imposed on the entity alongside this order. The regulatory filing explicitly stated that there are no aberrations or non-compliances identified by the authority beyond the rectified demand. The expected financial implication of the Rectification Order on the company is nil, as the liability has been completely wiped out.

Details of the Communication

The disclosure provided a structured overview of the regulatory interaction:

Next Steps

Despite the favorable outcome on the demand, United Foodbrands is proceeding with an appeal regarding the transfer pricing adjustment. The addition of ₹2.78 crores remains contested, and the company is taking necessary steps to address this specific component of the assessment.

United Foodbrands Limited has received approval from the National Company Law Tribunal (NCLT), Bengaluru Bench, for the amalgamation of two subsidiaries. The order, dated May 29, 2026, was received by the company on June 2, 2026. The scheme involves the merger of Blue Planet Foods Private Limited, acting as the Transferor Company, into Red Apple Kitchen Consultancy Private Limited, the Transferee Company. This corporate restructuring is intended to streamline operations within the group.

The amalgamation was sanctioned under Sections 230 to 232 of the Companies Act, 2013, and other applicable provisions. The regulatory approval marks the conclusion of the legal proceedings required to combine the entities. The scheme will become effective from the Appointed Date of April 1, 2024, once the certified copy of the tribunal's order is filed with the Registrar of Companies.

The following table outlines the key entities involved in the scheme:

The intimation regarding this development was submitted to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initially informed the exchanges about the proposed scheme on July 29, 2024. The completion of this amalgamation is a strategic move to consolidate the business interests of the subsidiaries under a single entity.