Cummins India has received a favorable order from the Income Tax Appellate Tribunal (ITAT) dated December 4, 2025, securing substantial tax relief of ₹210.29 crores for Financial Year 2017-18. The tribunal's decision represents a significant victory for the capital goods manufacturer in its ongoing tax dispute with the Income Tax Department.

ITAT Order Details

The Income Tax Appellate Tribunal has granted comprehensive relief to Cummins India, with the order addressing multiple aspects of the tax dispute. The tribunal's decision includes granting relief on adjustments aggregating to ₹210.29 crores, while redirecting ₹13.11 crores to the Assessing Officer for revalidation and upholding a disallowance of ₹0.48 crores.

Company Response and Next Steps

Cummins India has disclosed that it is currently evaluating further action in relation to the disallowance of ₹0.48 crores upheld by the tribunal. The company made this disclosure under Regulation 30 of the SEBI Listing Regulations, demonstrating its commitment to transparent communication with stakeholders.

The company noted a delay in filing the disclosure, explaining that the physically signed order by ITAT has not yet been received. The disclosure was filed based on a copy of the order downloaded from the official ITAT website, with concerned teams analyzing the impact of the order.

Financial Impact and Strategic Significance

This favorable tribunal order provides Cummins India with substantial financial relief and improved cash flow position. The ₹210.29 crore relief amount represents a significant benefit that could enhance the company's financial flexibility and operational capabilities.

The resolution demonstrates Cummins India's effective legal strategy and compliance framework in handling complex tax matters. This development follows the company's earlier communications dated August 14, 2023, and December 19, 2023, indicating a prolonged legal process that has now reached a favorable conclusion for the company.

Cummins India has received board approval to acquire an 8.78% stake in Clean Max for ₹27.00 million, marking a significant strategic investment in the renewable energy sector.

Investment Details

The board of Cummins India has formally approved this acquisition, which represents the company's entry into the clean energy space through its investment in Clean Max. The transaction involves purchasing an 8.78% equity stake for a total consideration of ₹27.00 million.

Strategic Significance

This investment aligns with the broader industry trend toward sustainable energy solutions and demonstrates Cummins India's commitment to diversifying its business portfolio. The acquisition of a stake in Clean Max positions the company to participate in the growing renewable energy market while maintaining its core engineering and manufacturing capabilities.

The move reflects Cummins India's strategic vision to expand beyond traditional engine manufacturing and explore opportunities in the clean energy sector, which has been experiencing significant growth in the Indian market.