Kanoria Chemicals & Industries Limited has secured a favorable outcome in a tax-related legal matter, with the Supreme Court of India dismissing an appeal filed by the Commissioner of Income Tax-IV Kolkata on January 28, 2026. The company has now provided additional regulatory details following exchange queries.

Supreme Court Decision Details

The apex court's decision in Civil Appeal No. 13772/2015 was straightforward and based on established precedent. Justice Dipankar Datta and Justice Augustine George Masih presided over the matter, with the Additional Solicitor General Mr. Raghavendra P. Shankar representing the tax department.

Legal Precedent and Court Reasoning

The court's decision was significantly influenced by a previous ruling in the Commissioner of Income Tax v. M/s. Jindal Steel & Power Limited case, decided on December 6, 2023. The Additional Solicitor General acknowledged that the issue involved in the Kanoria Chemicals appeal was already addressed by this coordinate bench judgment, which had ruled against the revenue department.

The Supreme Court noted that since the legal question had been definitively answered in the Jindal Steel case and batch matters, there was no need for further deliberation on the same issue.

Regulatory Compliance and Additional Disclosures

Following exchange queries dated January 31, 2026, Kanoria Chemicals provided additional clarifications on February 2, 2026. The company explained that under SEBI regulations, only orders passed against listed entities require mandatory disclosure, but this was a voluntary disclosure following good corporate governance principles.

The company clarified that while SEBI Circular requirements for detailed disclosures typically apply to orders against entities, Kanoria Chemicals voluntarily provided comprehensive details. The company confirmed that the Supreme Court's dismissal of the appeal has no material impact on its operations or activities.

Corporate Governance and Transparency

Kanoria Chemicals emphasized its commitment to transparency by voluntarily disclosing information beyond regulatory requirements. The company received the Supreme Court order via mail on January 29, 2026, and made the disclosure within 24 hours on January 30, 2026, demonstrating prompt compliance with listing obligations.

The dismissal of this appeal represents a positive resolution for the company, conclusively ending a legal matter that had been ongoing since 2015. With all pending applications also disposed of as per the court's order, the company can now move forward without this particular tax-related legal uncertainty.

Kanoria Chemicals & Industries Limited (KCIL) has received a resounding approval from its shareholders for the divestment of its material subsidiary. The special resolution, which proposed the dilution and divestment of 100% shareholding in the company's material subsidiary, was passed through a postal ballot conducted via remote e-voting.

Voting Results

The shareholders showed overwhelming support for the divestment plan:

Voting Process Details

• E-voting Period: August 5 to September 3
• Cut-off Date: July 25
• Total Shareholders: 18,580 (as of the cut-off date)
• Participating Shareholders: 232

Scrutinizer's Report

The voting process was scrutinized by Amit Choraria, a practicing Chartered Accountant, who was appointed as the Scrutinizer for the postal ballot. The scrutinizer's report, dated September 4, confirmed the fair and transparent conduct of the remote e-voting process.

Shareholder Participation

The voting saw participation from various categories of shareholders:

• Promoter and Promoter Group: 6 shareholders participated, casting 32,072,141 votes (98.66% of their total shareholding)
• Public Institutions: A small portion of institutional shareholders participated, with 3,342 votes cast
• Public Non-Institutions: 25,428 votes were cast by non-institutional public shareholders

Management's Response

H.K. Khaitan, Director of Kanoria Chemicals & Industries Limited, signed off on the voting results, confirming that the resolution was passed with the requisite majority.

Implications

The approval for this divestment marks a significant move for Kanoria Chemicals & Industries Limited. While the specific details of the material subsidiary and the reasons for divestment were not provided in the available data, such a decision typically indicates a strategic shift in a company's focus or portfolio management.

Shareholders and market observers will likely be keen to see how this divestment impacts KCIL's future operations and financial performance. The overwhelming support from shareholders suggests confidence in the management's decision and strategy moving forward.