Bombay High Court Overturns Rs 170.29 Cr Tax Demand Against Go Digit Insurance
Go Digit General Insurance has received a significant boost in a long-standing tax dispute. The Bombay High Court has overturned a Rs 170.29 crore demand raised by the IRS, providing temporary relief to the company. The court's decision comes after it directed the Income Tax Appellate Tribunal (ITAT) to re-examine the case based on the GST Council's guidance within three months. The matter primarily relates to an industry-wide issue, and the High Court has ordered a reconsideration. Go Digit has confirmed receiving the court order on July 4 and is currently reviewing its legal options. The company has not yet taken any formal action in response to the order. The tax demand, which included Rs 154.80 crore in tax liabilities and an additional Rs 15.48 crore in penalties, spanned the period from July 2017 to March 2022. Despite the ongoing dispute, Go Digit reported a 119.5% year-on-year rise in profit after tax to Rs 115.61 crore for the quarter ended March 31. Additionally, for the full fiscal year ending March 2025, the company's net profit surged 133% to Rs 425 crore. Gross premiums written during the quarter rose 10.29% to Rs 2,576.38 crore, and total income grew 6.04% year-over-year to Rs 2,855.18 crore. The Bombay High Court's decision to overturn the Rs 170.29 crore tax demand provides Go Digit General Insurance with a significant reprieve in its ongoing IRS dispute. The company is currently reviewing its legal options and has not yet taken any formal action in response to the order. Despite the dispute, Go Digit has reported strong financial performance, with a significant increase in net profit and total income for the fiscal year ending March 2025.
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