Shares of Tata Steel closed at ₹187.95 on the BSE, up 1.05%, after the company announced a favourable ITAT ruling that cut its FY2009 tax exposure by ₹427 crore.
The order, dated February 20, 2026, permits the deduction of interest expenditure that had been disallowed under Section 36, reducing the FY2008 exposure from ₹1.901 crore to ₹1.686 crore; the newer FY2009 ruling trims it further to ₹1.259 crore.
The ₹427 crore cut represents a 22% drop from the FY2008 exposure and a 33% decline from the cumulative FY2008‑FY2015 exposure, which stood at ₹1.901 crore.
Tata Steel said it will adjust the contingent liability notes in its financial statements and expects the orders to strengthen pending litigations for FY2010‑FY2015.
Analysts project that the tax relief will have a neutral impact on the company’s upcoming earnings, while sector peers like JSW Steel are also reporting similar tax liability reductions. The market will keep a close eye on the resolution of the FY2010‑FY2015 disputes as the company moves toward its next earnings release.