GIGrasim Industries500300Rumour verification

Bombay HC quashed reassessment notice; Rs. 329 Crores was alleged income, not a tax claim

Bombay High Court quashed the Income Tax Department's reassessment notice dated 30 June 2026 and the related reassessment proceedings.

By ScoutQuest · Sun 25 Oct 2026, 1:26 PM IST · 2 min read

Alleged Escaped Income

Rs. 329 Crores

Potential Tax Exposure

Rs. 114 crores at 34.944%

Reassessment Notice Date

30 June 2026

What happened

• The Income Tax Department issued a notice dated 30 June 2026 under section 148 of the Income Tax Act, 1961, proposing reassessment of the company's assessed income.
• The Department alleged that income/benefit of Rs. 329 Crores arising from the company's participation in the rights issue of Vodafone Idea Limited during FY 2019-20 had escaped assessment.
• The company challenged the initiation of the reassessment proceedings and the validity of the notice itself before the Bombay High Court by update a writ petition.
• By order dated 22 October 2026, the Bombay High Court quashed the reassessment notice and the consequential reassessment proceedings initiated by the Department.

What the company clarified

• The notice merely proposed initiation of reassessment proceedings; it did not constitute any determination of revised income or tax demand on the company.
• The Rs. 329 crore figure in the news article is the income the Department allegedly proposed had escaped assessment, not a tax claim or tax demand; to that extent the company said the article was factually incorrect.
• Potential tax exposure, if computed on that alleged income at the maximum marginal rate of 34.944%, would be Rs. 114 crores.
• That amount would be below the company's materiality threshold under Regulation 30 of the SEBI (LODR) Regulations, 2015 for FY 2026-27, and hence did not attract the requirement for disclosure under that regulation.

What it means for retail investors

• The company stated there is no financial or operational impact of the matter on it, and that the news article does not have any material impact on the Company.
• The company confirmed there is no information that required disclosure under Regulation 30 that had not been disclosed to the exchanges.
• The update is a reply to clarification sought by NSE and BSE on a market rumour, in which the company sets out the outcome of its writ petition and the size of the sums involved.

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