Aditya Birla Capital Limited has issued a significant update on the ongoing tax litigation involving its subsidiary, Aditya Birla Sun Life Insurance Company Limited (ABSLI). On February 3, 2025, ABSLI informed the parent company of the receipt of a rectification order from the Assessing Officer for Assessment Year 2022-23.

Tax Demand Revision

ABSLI had previously contested a tax demand of Rs. 2,29,94,07,470 raised by the Assessing Officer. The demand primarily stemmed from incorrect tax calculations, prompting ABSLI to file an appeal with the Commissioner of Income-Tax (Appeals). In addition, ABSLI also filed a rectification cum stay petition for the wrong calculation of tax demand.

Following these actions, the Assessing Officer issued a revised rectification order for the tax demand, reducing the amount from Rs. 229.94 crore to Rs. 184.50 crore. The order was issued under Section 154 read with Section 143(3) of the Income Tax Act, 1961.

Key Developments and Compliance

• The rectification order effectively revised the tax demand, addressing the issue of calculation errors.
• The litigation, which had been a point of concern for ABSLI, is now moving towards resolution following the rectification.
• ABSLI continues to work in compliance with the Income Tax Department and will update stakeholders accordingly.

Impact on Aditya Birla Capital Ltd.

The update on ABSLI's tax litigation does not involve any changes or litigation concerning the key management personnel or the promoter of the company. There is no settlement involved in this case. The financial position of Aditya Birla Capital Ltd. remains unaffected by the revised tax demand, as the reduction in tax demand is expected to have a positive financial impact on ABSLI.

The company’s transparency in disclosing this information ensures that stakeholders remain well-informed about the progress of this legal matter. Aditya Birla Capital Ltd. continues to comply with SEBI Listing Regulations and strives to maintain effective corporate governance practices.

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