ITAT Rules in Favour of LG Electronics India in Rs 1,305 Crore Tax Case:

LG Electronics India Limited has informed the stock exchanges that it has received a favorable order from the Income Tax Appellate Tribunal (ITAT), Delhi, in connection with income tax cases related to five financial years: FY2014-15, FY2016-17, FY2017-18, FY2019-20 and FY2021-22.

The ITAT has ruled in favor of the company and deleted all transfer pricing and corporate income tax additions made by the tax authorities. The total disputed additions were worth around Rs 1,305 crore.

According to the company, the transfer pricing additions were removed because of the Advance Pricing Agreement (APA) it signed with the tax department on January 5, 2026. The corporate tax additions were also deleted after the tribunal followed its earlier rulings on similar issues.

LG Electronics India said the assessing officer is yet to issue the formal order implementing the ITAT's decision.

The company stated that the ruling will have no negative impact on its financials, operations or business activities. The order effectively removes the outstanding tax demands. However, the Income Tax Department still has the option to challenge the corporate tax-related part of the ruling before the High Court.