Tata Steel Limited Succeed Key Tax Case; Exposure Reduced to ₹1,686 Crore

Mumbai, February 28, 2026: Tata Steel Limited has received a favorable ruling from the Income Tax Appellate Tribunal (ITAT) in a long-pending tax dispute related to the deduction of interest expenditure on loans used for the acquisition of Corus Group Plc.

In a regulatory filing to the BSE Limited (Scrip Code: 500470) and the National Stock Exchange of India Limited (Symbol: TATASTEEL), the company disclosed that it received the Tribunal’s order dated February 20, 2026, on February 27, 2026.

Background of the Dispute

The matter dates back to an order issued on February 7, 2014, by the Deputy Commissioner of Income Tax, Circle 2(3)(1), Mumbai, pertaining to FY2008. The tax authority had disallowed Tata Steel’s claim of ₹518.76 crore as deduction for interest expenditure under Section 36(1)(iii) of the Income Tax Act, 1961.

The interest pertained to loans borrowed and utilized for the acquisition of Corus Group Plc, a foreign subsidiary. Similar disallowances were made for subsequent financial years from FY2009 to FY2015, resulting in an aggregate tax exposure of approximately ₹1,901 crore for the period FY2008 to FY2015.

Tata Steel had filed an appeal before the Income Tax Appellate Tribunal on May 10, 2016, challenging the disallowance for FY2008.

Favorable Tribunal Ruling

Following the final hearing in November 2025, the Tribunal has now allowed the company’s claim for deduction of interest expenditure for FY2008.

As a result of the order, Tata Steel’s total tax exposure related to the issue will reduce from approximately ₹1,901 crore to around ₹1,686 crore — a relief of nearly ₹215 crore.

The Assessing Officer will issue a separate order to give effect to the Tribunal’s ruling. The company stated that it will make necessary adjustments in its contingent liability disclosures in the financial statements for FY2027.

Impact on Pending Litigation

Tata Steel indicated that the favorable order is expected to have a persuasive impact on similar pending litigations concerning the same issue for FY2009 to FY2015.

The disclosure has been made in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.