The Supreme Court of India has rejected the Income Tax Authority's appeal regarding the disallowance of general licensing fees for various financial years amounting to Rs 101.21 crore.
Nidhi | Jan 22, 2026 |
Nestlé India Wins Rs 101.21 Crore Tax Case as Supreme Court Rejects Revenue’s Appeal
In a big win for Nestlé India, the Supreme Court of India has rejected the Income Tax Authority’s appeal regarding the disallowance of general licensing fees for various financial years amounting to Rs 101.21 crore. This was informed by the company in its regulatory filing dated January 21, 2026.
The Income Tax authority had challenged the general licensing fee payment made by Nestlé to its Swiss parent entity for the financial years 1996-1998, 1999-2001 and 2004-2008. The Tax authority claimed that these licensing fee payments were excessive and unreasonable.
Nestlé had contested this order before the Delhi High Court, which ruled in favour of the company. However, the Income Tax authority approached the Supreme Court of India, which dismissed the Revenue’s appeal in its order dated January 13, 2026. The matter was decided in favour of Nestlé India. The total amount involved in this tax dispute amounted to Rs 101.21 crore.
The company also clarified that there was no litigation against its key managerial personnel, promoters, and the persons in control of the company.
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