The company said the order was passed on September 30 by the Deputy Commissioner of State Tax (Appeal-1), Division-1, Ahmedabad, Gujarat, and was received by RITES on October 3.
“…we hereby inform you that RITES has received an Order dated September 30, 2026, passed by the Hon’ble Deputy Commissioner of State Tax (Appeal-1), Division-1, Ahmedabad, Gujarat, in respect of the appeal filed by the company against the demand order pertaining to FY 2019-20. The said order was received by the company on October 03, 2026.
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Vide the aforesaid Order, the appeal filed by the company has been allowed, and the demand order issued by the State Tax Officer has been partially set aside. Accordingly, relief amounting to ₹38,30,49,704/- has been granted to the company in respect of the demand comprising tax, interest and penalty pertaining to FY 2019-20,” according to a stock exchange filing.
RITES had filed an appeal against the demand order issued by the State Tax Officer for FY20. The appellate authority allowed the appeal and partially set aside the demand order, granting relief of ₹38,30,49,704.
The company had made a pre-deposit of ₹1.93 crore at the time of filing the appeal. RITES said that, subject to applicable law, there is no further tax, interest or penalty liability pursuant to the demand order.
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The proceedings related to the demand raised by the State Tax Officer for FY20, comprising tax, interest and penalty. The company said the financial impact of the proceedings is the ₹38.30 crore relief granted, with no further tax, interest or penalty liability pursuant to the demand order.
Last month, RITES said it is expecting 2027-28 (FY28) to be a good year for revenue and profit as its record ₹9,450 crore order book starts translating into execution. Rahul Mithal, CMD of RITES, said the order book is still relatively young, with projects spread over three to four years and now beginning to generate revenue.
“This year if I summarise, it’s consolidation to acceleration. We touched an all-time high order book.” Mithal said the company has also maintained its track record of securing roughly one order a day, including 128 orders in the latest quarter. He expects RITES to cross the ₹10,000 crore order book mark in the coming quarters.
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The government’s ₹20,800 crore approval for multitracking projects across nine states could provide another growth opportunity. RITES work across the railway project cycle, from feasibility studies and detailed project reports to alignment surveys, project supervision and technical audits. Mithal expects the government’s infrastructure spending push to benefit all three of the company’s major activity areas.
On Thursday (October 1), shares of Rites Ltd ended at ₹209.70, up by ₹0.35, or 0.17%, on the BSE.