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.

Deepak fertilisers & petrochemicals Corporation Limited has successfully resolved a regulatory matter with the Ministry of Corporate Affairs, receiving a final order that concludes compounding proceedings under the Companies Act 2013.

Final Order and Payment Details

The Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai passed the final order on December 26, 2025, which was received by the company on January 1, 2026. The resolution involved payment of compounding fees totaling ₹35.50 lakh.

Background of the Matter

The compounding application was filed under Section 441 of the Companies Act 2013 for alleged non-disclosures under Section 129 of the Act. The specific allegations involved:

• Non-disclosure of immovable property in books of accounts
• Non-disclosure of investments in books of accounts
• Non-disclosure of contingent liabilities in books of accounts

The company had previously disclosed receiving interim orders from the Regional Director's office on December 2, 2025, through a filing made on December 3, 2025.

Resolution and Compliance

With the payment of the compounding fees by both applicants, the alleged violation has been officially compounded. The compounding application now stands disposed-off, bringing complete closure to the regulatory proceedings.

The company has maintained transparency throughout the process, ensuring all required disclosures were made to stock exchanges in compliance with SEBI regulations. The final order was received by the Chairman & Managing Director via speed post on January 1, 2026, around 5:30 p.m.

Regulatory Compliance

The disclosure has been made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. All details required under Para A of Part A of Schedule III, as per SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, were previously disclosed to stock exchanges on December 3, 2025.

The information has also been made available on the company's website at www.dfpcl.com , ensuring comprehensive stakeholder communication regarding this regulatory matter.