ITAT Ahmedabad Quashes Rs 13.28 Crore Tax Demand Against Styrenix Performance Materials
In a major legal and financial reprieve for Vadodara-headquartered polymer maker Styrenix Performance Materials Limited, the Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, has quashed an income tax demand amounting to Rs 13.28 crore.
In an exchange filing submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the specialty materials player informed both the National Stock Exchange of India (NSE: STYRENIX) and BSE Limited (Scrip Code: 506222) that it had received the certified copy of the tribunal's order.
Background of the Tax Dispute
The tax dispute originated from proceedings conducted by the Assessment Unit of the Income Tax Department for Assessment Year (AY) 2022-23. Styrenix had originally disclosed the assessment order and the resulting Rs 13.28 crore tax demand to the stock exchanges in a regulatory notification.
Aggrieved by the additions and the assessment order, the company filed an appeal before the Ahmedabad bench of the ITAT. Following appellate hearings, the tribunal upheld the company's submissions, allowed the appeal, and directed the complete deletion of the tax demand.
The company received the certified copy of the ITAT order on November 12, 2026, and confirmed that no regulatory violations or contraventions were alleged or committed.
Positive Impact on Balance Sheet and Earnings
Styrenix Performance Materials stated that the order has an immediate positive financial impact on the company by extinguishing the contested liability of Rs 13.28 crore.
This ruling continues a streak of successful tax litigation outcomes for the specialty chemicals player:
- In June 2026, the ITAT Ahmedabad had similarly allowed an appeal by Styrenix for Assessment Year 2021-22, deleting a tax demand of Rs 4.38 crore along with setting aside transfer pricing additions of Rs 17.11 crore.
- The company had also previously challenged an assessment order for AY 2023-24 involving a smaller income tax demand of Rs 1.92 crore.
For equity investors on Dalal Street, the removal of recurring tax overhangs provides operational clarity and protects free cash flows, which Styrenix has historically deployed towards dividend distributions.
Operational Profile
Styrenix Performance Materials Limited, formerly known as INEOS Styrolution India Ltd., is one of India's premier producers of engineering thermoplastics. Operating manufacturing facilities in Gujarat, the company is a market leader in styrene-based polymer solutions, primarily producing Acrylonitrile Butadiene Styrene (ABS under the brand name Absolac) and Styrene Acrylonitrile (SAN under Absolan). Its products serve critical domestic manufacturing segments, including automotive components, consumer electronics, and household appliances.
