Ramco Industries Limited has successfully resolved a long-standing tax dispute involving the Income Tax Department. The case, which had been ongoing for several years, was concerning the disallowance of certain expenditure under Section 14A of the Income Tax Act, 1963, related to the earning of exempted dividend income.

The Income Tax Appellate Tribunal (ITAT) ruled in favor of Ramco Industries, upholding the company's position regarding the tax treatment for the assessment years 2011-12 and 2013-14. The tax dispute had led to a significant financial implication, with an amount of Rs. 2.18 Crore being involved.

In its order dated April 7, 2025, the ITAT dismissed the appeal filed by the Income Tax Department, which sought to challenge the favorable ruling previously issued by the Commissioner of Income Tax (Appeals). The ruling brought an end to the long-standing matter, and Ramco Industries received the formal order on April 11, 2025, confirming the favorable outcome.

This decision has been a major relief for the company, resolving a significant issue that had lingered for several years. The favorable verdict is seen as an important step in safeguarding the company’s financial interests. The tax dispute resolution also underscores the legal strength of the company's position and is a testament to its diligence in handling financial and regulatory matters.

The company’s legal and finance teams worked diligently on this matter, and the outcome will have a positive impact on its financial standing. It is expected that the resolution of this tax dispute will also improve the company’s relations with tax authorities, helping to streamline future processes.

Ramco Industries has expressed gratitude for the successful outcome and reaffirmed its commitment to complying with all legal and regulatory requirements. The company also stated that it will continue to engage with relevant authorities to ensure full transparency and adherence to all financial and tax-related norms.

This resolution is a significant milestone for the company, further consolidating its strong position in the industry.

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