Engineering firm RITES Ltd has received significant relief of ₹38.30 crore against a demand comprising tax, interest and penalty for financial year 2019-20, after the appellate authority partially set aside the demand order. According to the latest regulatory filing with the National Stock Exchange of India (NSE), the order was passed on September 30, 2026 by the Deputy Commissioner of State Tax (Appeal-1), Division-1, Ahmedabad, Gujarat, and was received by RITES on October 3, 2026. The company had earlier made a ₹1.93 crore pre-deposit at the time of filing the appeal and stated there is no further tax, interest or penalty liability pursuant to the demand order, subject to applicable law.
The appeal filed by RITES against the demand order issued by the State Tax Officer for FY20 has been successfully allowed by the appellate authority. As reported by CNBC TV18, the proceedings related to the demand raised by the State Tax Officer for FY20, comprising tax, interest and penalty, have resulted in the ₹38.30 crore relief granted to the company. The NSE filing confirms that the appeal process required RITES to make a pre-deposit of ₹1.93 crore at the time of initiation, and following the relief granted by the appellate authority, the company now faces no further liabilities regarding tax, interest, or penalties linked to the said demand order, subject to applicable law provisions.
Despite the tax relief, RITES continues to demonstrate strong operational performance with an all-time high order book of ₹9,450 crore. According to CNBC TV18, the company has maintained its track record of securing roughly one order a day, including 128 orders in the latest quarter. Rahul Mithal, CMD of RITES, stated that "this year if I summarise, it's consolidation to acceleration" and expects the company to cross the ₹10,000 crore order book mark in the coming quarters. The order book is relatively young with projects spread over three to four years and now beginning to generate revenue.
The government's ₹20,800 crore approval for multitracking projects across nine states could provide significant growth opportunities for RITES. As reported by CNBC TV18, RITES works 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, with 2027-28 (FY28) expected to be a good year for revenue and profit as the record order book starts translating into execution.
On Thursday (October 1), shares of RITES Ltd ended at ₹209.70, up by ₹0.35, or 0.17%, on the BSE, according to CNBC TV18. The positive market response reflects investor confidence in the company's operational performance and future growth prospects, despite the ongoing tax proceedings that have now been successfully resolved through the appellate process. The granted relief will likely have a favourable impact on the company's financial standing, as it negates any substantial outgoing payments associated with the disputed tax demand.
