Escorts Kubota Challenges Income Tax Order, Files Appeal In Delhi Tribunal

In compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency for its stakeholders, Escorts Kubota Limited (EKL) has submitted an appeal to the Income Tax Appellate Tribunal (ITAT) in Delhi against the assessment order passed under section 143(3) read with section 144C(13) of the Income Tax Act, 1961 for the assessment year 2021-22, wherein the transfer pricing adjustment was made amounting to INR 20.81 crore.

The disputed adjustment led to a consolidated tax liability of Rs 5.24 crore recorded in the accounts of Escorts Kubota Limited, the transferee entity following a merger finalized in September 2024. The appeal is being pursued under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961.

In Novemeber 2024 Escorts Kubota sold 8,974 tractors showing Y-o-Y decline of 9.4% compared to 9,906 tractors sold in November 2023. In November 2024 Domestic sales stood at 8,730 units showing a Y-o-Y decline of 8.1% compared to 9,503 units sold in November 2023. In terms of export, 244 units were exported in November 2024 showing a decline of 39.5% compared to 403 units exported in November 2023.

However, during the festive months from September to November, EKL domestic tractor sales were up by 9% to 38,554 tractors as compared to 35,387 tractors in the same period last year.