Deepak fertilisers & petrochemicals Corporation Limited has achieved a significant victory in its tax dispute proceedings, with the Commissioner of Income Tax (Appeals), Mumbai allowing appeals involving disputed taxable income of ₹215.00 crores. The favorable ruling covers assessment years from 2013-14 to 2018-19, marking a substantial resolution for the chemical and fertilizer manufacturer.

Background of Tax Disputes

The tax appeals originated from assessment and demand orders received by the company for multiple assessment years. The company had initially received orders for assessment years 2013-14, 2014-15, and 2015-16 during the quarter ended June 30, 2021. Subsequently, orders for the remaining years from 2016-17 to 2019-20 were received by the end of October 2021.

Company's Legal Strategy

The Assessing Officer had made certain disallowances during the assessment proceedings. However, the company's management, based on advice from independent tax experts, determined that these disallowances were legally defendable. This assessment proved correct as the appeals process resulted in a favorable outcome for the company.

The company had filed appeals and rectification applications as appropriate for each assessment year, demonstrating a systematic approach to challenging the tax authorities' initial determinations.

Regulatory Compliance and Disclosure

The development was formally communicated to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received notification of the favorable ruling via email from Income Tax Authorities on January 8, 2026, at 2:38 p.m.

Financial Impact and Implications

The successful resolution of appeals covering ₹215.00 crores in disputed taxable income represents a significant positive development for the company. This outcome validates the company's position that the original disallowances were not justified and demonstrates the effectiveness of its legal strategy in tax matters.

The ruling by the Commissioner of Income Tax (Appeals) provides clarity on the company's tax obligations for the specified assessment years and resolves a matter that had been under dispute since 2021. The company has made this information available on its official website at www.dfpcl.com , ensuring transparency with all stakeholders.