Bata India Receives Income Tax Demand Over Alleged Under-Reporting of Income
Bata India received a tax demand notice for AY 2022–23 over alleged under-reporting of income but expects no material financial impact, as shares closed slightly lower at ₹1,197.50 on May 2
Footwear giant Bata India Limited has disclosed to stock exchanges that it has received an Assessment Order and Demand Notice from the Income Tax Department’s Assessment Unit under Section 156 of the Income Tax Act, 1961. The action relates to the Assessment Year 2022–23, and includes the initiation of penalty proceedings under Section 270A for alleged under-reporting of...
Footwear giant Bata India Limited has disclosed to stock exchanges that it has received an Assessment Order and Demand Notice from the Income Tax Department’s Assessment Unit under Section 156 of the Income Tax Act, 1961. The action relates to the Assessment Year 2022–23, and includes the initiation of penalty proceedings under Section 270A for alleged under-reporting of income.
The company reported that it was served with the official communication on May 2, 2025. Bata acknowledged the receipt of the demand notice and the initiation of proceedings, and it maintained that no material financial or operational impact is anticipated as a result of the order.
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“It is believed that the Company has a good case to defend the matters before the appropriate authorities without any material financial impact,” the company said in its statement signed by Nitin Bagaria, AVP – Company Secretary & Compliance Officer.
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The demand arose from alleged discrepancies in the total income reported by the company for the fiscal year in question. Bata has expressed confidence in its legal position and has not disclosed the quantum of the tax demand in the public communication.
This disclosure has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows the guidance outlined in SEBI’s Master Circular issued in November 2024.
Meanwhile, Bata India’s stock (NSE: BATAINDIA, BSE: 500043) closed slightly lower on Friday. The stock ended the session at Rs. 1,197.50, down Rs. 7.40 (-0.61%) from the previous close of Rs. 1,208.40. During the day, it touched a high of Rs. 1,218.80 and a low of Rs. 1,190.10, with a volume-weighted average price (VWAP) of Rs. 1,198.55.
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