Grasim Industries says ₹329 crore is an income proposal, not a tax demand

Exchange query
Cement And Cement Products

Blacklitt Research25 October 20262 min read

Grasim Industries (NSE: GRASIM) replied to clarifications sought by NSE and BSE on a news item about a ₹329 crore tax claim, it said in a filing on 25 Oct 2026. The company says the amount is income the tax department proposed to reassess, not a tax claim or demand, and that the Bombay High Court quashed the reassessment notice on 22 Oct 2026.

Key highlights

Income proposed to have escaped assessment: ₹329 crore
Potential tax exposure computed by the company: ₹114 crore
Maximum marginal rate used in the computation: 34.944%
Bombay High Court order quashing the reassessment notice: 22 Oct 2026

The exchange query and the tax notice in numbers

Item	Detail
Exchange queries	NSE letter dated 23 Oct 2026 and BSE e-mail dated 23 Oct 2026
Income tax notice	Dated 30 Jun 2026, under section 148 of the Income Tax Act, 1961
Income proposed to have escaped assessment	₹329 crore, from the Vodafone Idea rights issue in FY 2019-20
Potential tax exposure computed by the company	₹114 crore
Maximum marginal rate used	34.944%
Bombay High Court order	Dated 22 Oct 2026, quashing the reassessment notice and proceedings
Financial or operational impact	None, the company says

The tax notice and the High Court order

The Income tax department issued a notice dated 30 Jun 2026 under section 148 of the Income Tax Act, 1961, proposing reassessment and alleging that income or benefit of ₹329 crore arose from the company's participation in the Vodafone Idea rights issue in FY 2019-20. The company challenged the reassessment initiation and the notice before the Bombay High Court by way of a writ petition.

On 22 Oct 2026 the Bombay High Court quashed the reassessment notice and the consequential reassessment proceedings. The company says the notice merely proposed initiation of reassessment and did not determine any revised income or tax demand.

The company's view of the ₹329 crore figure

The company says the ₹329 crore is the income allegedly proposed to have escaped assessment and not a tax claim or demand, so the news item is factually incorrect to that extent. It computes a potential tax exposure of ₹114 crore on that income at the maximum marginal rate of 34.944%, and says that amount would be below its materiality threshold for FY 2026-27, so it did not attract the requirement for disclosure.

What the clarification means for Grasim Industries' shareholders

The company says there is no financial or operational impact of the matter and that the news article does not have any material impact on the company. The filing does not say whether the tax department will appeal the High Court order, what the materiality threshold is in rupees, or what any demand could be if reassessment proceeds.

Reference: Original filing (PDF)

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