Income Tax Dept appeals before ITAT against relief on ESOP expense disallowance

Dr. Lal PathLabs received an intimation on October 07, 2026 that the Income Tax Department has shared an appeal before the Income Tax Appellate Tribunal, New Delhi (ITAT).

Thu 8 Oct 2026

ESOP expense disallowance in dispute

INR 32,66,18,927/-

Assessment Year

2022-23

Forum of appeal

Income Tax Appellate Tribunal, New Delhi (ITAT)

What the company informed the exchanges

Dr. Lal PathLabs has told the exchanges it received an intimation on October 07, 2026 (15:31 IST) that the Income Tax Department has shared an appeal before the Income Tax Appellate Tribunal, New Delhi (ITAT).

This disclosure continues from the Company's earlier letters dated April 01, 2024 and July 17, 2026, which had informed the exchanges first of an assessment order from the Income Tax Department and later of an appellate order in the Company's favour.

The matter in brief

• The appeal relates to Assessment Year 2022-23 and has been shared under section 250 of the Income Tax Act, 1961.
• It is against the order of the Commissioner of Income Tax (Appeals), Income Tax Department.
• That order had allowed relief to the Company on disallowances of ESOP expenses of INR 32,66,18,927/- that the Income Tax Department had made.

The company's stated position

The Company says it does not reasonably expect the outcome of the appeal to have any material impact on the Company.

How to read this

• An assessment order is the Income Tax Department's first decision on a company's tax position. Here, the Department had disallowed ESOP expenses of INR 32,66,18,927/-, meaning it did not accept that amount as a deduction.
• The Company went in appeal, and the Commissioner of Income Tax (Appeals) decided in its favour, allowing the relief.
• The Department has now taken the same dispute to the ITAT, a higher appellate forum.
• The Company's own assessment of the financial effect is that it does not reasonably expect any material impact.

This is a tax litigation update. The sum involved is INR 32,66,18,927/-, and the matter now rests with the ITAT.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.