Jubilant FoodWorks Limited has announced receipt of a favorable appellate order from the Income Tax Appellate Tribunal for Financial Year 2020-21. The tribunal has declared the assessment order void ab initio on grounds of being time-barred, marking a significant development in the company's ongoing tax proceedings.

Appellate Tribunal Decision Details

The Income Tax Appellate Tribunal's order, received on February 5, 2026, represents a favorable outcome for the food services company. The tribunal's decision to declare the assessment order void ab initio on time-barred grounds provides relief to Jubilant FoodWorks, though the order remains subject to further appellate remedy available with the other party.

Background and Previous Developments

This appellate order follows the company's earlier disclosure in December 2025 regarding a rectification order that significantly reduced the tax demand. The rectification order had lowered the tax demand from Rs.216.19 crores to Rs.190.21 crores for FY 2020-21, as communicated through the company's intimation letter dated December 5, 2025.

Regulatory Compliance and Disclosure

Jubilant FoodWorks has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company has provided comprehensive details of the appellate order through Form A and additional annexures as required by regulatory guidelines.

Current Status and Implications

The tribunal's favorable decision declaring the assessment order void ab initio provides significant relief to Jubilant FoodWorks. However, the company has noted that the order remains subject to further appellate remedy available with the other party, indicating potential for additional proceedings. The company has stated that there are no expected financial implications, penalties, or sanctions arising from this communication, and no specific actions are required at this stage.

Jubilant FoodWorks has disclosed receiving an assessment order from the Income Tax Department that raises a tax demand of ₹169.59 crores for Financial Year 2021-22. The company received this communication on January 31, 2026, and has informed the stock exchanges under regulatory disclosure requirements.

Assessment Order Details

The tax demand has been raised due to what the company describes as mistakes apparent from records, certain disallowances of expenses, and transfer pricing adjustments that ignore the company's contentions. The assessment order pertains specifically to Financial Year 2021-22.

Company's Response Strategy

Jubilant FoodWorks has outlined its approach to address the assessment order through multiple channels. The company plans to file a rectification application with the Assessing Officer to address mistakes apparent from records. Additionally, the impugned assessment order will be appealed before the Income Tax Appellate Tribunal.

The company expressed confidence in its position, stating that it expects to receive relief from the relevant Assessing Officer and/or appellate authority. Management believes the tax demand will likely be deleted following the redressal process.

Financial Impact Assessment

Despite the substantial amount involved, Jubilant FoodWorks has stated that it does not anticipate any material financial implications from this matter. The company's assessment suggests confidence in successfully challenging the tax demand through the available legal remedies.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company has confirmed that all information provided is true, correct, and complete to the best of its knowledge and belief. The information has also been disseminated on the company's website under the Investor Relations section, ensuring transparency with all stakeholders.