New Delhi: Nestlé India Ltd on Wednesday said it has received a favourable outcome in a long-pending income tax litigation after the Supreme Court dismissed appeals filed by the tax authorities against earlier rulings in the company’s favour.
In a regulatory filing, the FMCG major said the dispute related to the disallowance of general licensing fees for several financial years spanning 1996–98, 1999–2001 and 2004–08. The income tax department had contended that the payments made during these years were excessive and unreasonable, a claim that Nestlé India had challenged through appellate proceedings.
The matter had earlier been decided in favour of the company up to the Delhi High Court, following which the tax authorities moved the Supreme Court. However, by an order dated January 13, 2026, and received by the company on January 21, the apex court dismissed the appeals as withdrawn, effectively ending the litigation.
Nestlé India said the aggregate amount involved in the dispute was ₹101.21 crore. The company added that there are no litigations involving key management personnel or promoters in this matter.
The development removes a key overhang for the company and provides greater certainty on past tax exposures, analysts said, even as large corporates continue to face scrutiny on transfer pricing and licensing arrangements.