Dr Lal PathLabs Limited disclosed on Thursday that the Income Tax Department has filed an appeal before the Income Tax Appellate Tribunal (ITAT), New Delhi, challenging an earlier ruling in the company's favour. According to reports from The Hindu BusinessLine, the company received intimation of the appeal on October 7, 2026. The appeal targets an order passed by the Commissioner of Income Tax (Appeals) under Section 250 of the Income Tax Act, 1961, which had granted the company relief on disallowances of Employee Stock Option Plan (ESOP) expenses worth ₹32.66 crore for assessment year 2022-23.
This disclosure represents the latest development in a tax dispute that has been ongoing since the company received an assessment order in April 2024. As reported by The Hindu BusinessLine, the dispute was followed by an appellate order in the company's favour in July 2026. The current ITAT appeal challenges this previous favourable ruling, creating a new phase in the ongoing tax dispute between the company and the Income Tax Department.
According to the company's disclosure, Dr Lal PathLabs stated that it does not expect the ITAT appeal to affect its operations materially. This assessment suggests the company believes the financial impact of the ongoing tax dispute will remain manageable despite the escalation to the appellate tribunal level.
Dr Lal PathLabs shares closed at ₹1,898.90 on the NSE on Thursday, down 2.38 per cent from the previous close of ₹1,945.10, though the broader market also weakened. As reported by The Hindu BusinessLine, the stock trades at a trailing P/E of 59.76 and has a market capitalisation of approximately ₹31,873 crore. Year-to-date, the stock has returned 25.70 per cent, significantly outperforming the Nifty 500.
