On March 21, 2025, AstraZeneca Pharma India Limited announced that it had received a draft Order Giving Effect to the order of the Hon’ble Income-Tax Appellate Tribunal (ITAT), issued under Section 144C(1) read with Section 143(3) of the Income Tax Act, 1961. This order relates to the assessment year 2014-15, marking a significant development in the ongoing tax litigation faced by the company. This disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed companies to inform the stock exchanges about material developments.

The dispute pertains to the transfer pricing and corporate tax issues in which major adjustments had been made previously by the tax authorities. These adjustments have now been deleted, as per the order from the ITAT, thereby reducing the tax liability. The tax relief granted in the draft order amounts to approximately Rs. 35.22 crores, excluding any interest.

This litigation was first disclosed to the stock exchanges in the company’s communication dated August 14, 2023, and is part of the ongoing legal proceedings that AstraZeneca Pharma India has been engaged in regarding its tax matters.

The disclosure also includes a detailed Annexure (Annexure – A), providing the necessary information, as required by the SEBI Circular SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, which aims to ensure that investors and other stakeholders are kept informed about material litigation and its potential impact on the company.

The company has emphasized that this is a subsequent development in the ongoing case, and further updates will be provided as needed. At this stage, there are no immediate financial implications, such as penalties or compensation, other than the tax relief mentioned. The disclosure ensures transparency regarding the financial standing and the potential resolution of this matter.

Annexure – A contains detailed information about the ongoing litigation, including the party involved (Assistant Commissioner of Income Tax), the nature of the dispute, and the potential financial implications, which may aid investors and stakeholders in assessing the company's position.

AstraZeneca Pharma India Limited’s continued engagement with regulatory bodies like the Income-Tax Appellate Tribunal ensures that the company remains in compliance with legal requirements, while actively managing the financial aspects related to its corporate tax liabilities. The company also continues to prioritize transparency in keeping shareholders and investors updated with any material changes or developments in its tax-related matters.

In conclusion, the draft order represents a favorable development for AstraZeneca Pharma India, especially with the deletion of significant adjustments related to transfer pricing and corporate tax issues. The tax relief of Rs. 35.22 crores, excluding interest, marks a positive outcome for the company in this ongoing litigation.

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