Bata India Receives Income Tax Demand Over Alleged Under-Reporting of Income

Bata India has received an income tax demand notice alleging under-reporting of income by ₹320 crore across multiple assessment years. The footwear major plans to contest the demand, claiming proper disclosure of all transactions. The notice reportedly stems from differing interpretations of royalty payments and transfer pricing adjustments. This development comes when the FMCG sector faces increased tax scrutiny, particularly regarding international transactions and brand royalty arrangements. Bata maintains its tax positions are legally sound and will pursue all available appellate remedies.