The Income Tax Department has taken legal action by approaching the Bombay High Court to contest a decision made by an appellate tribunal in favor of the Life Insurance Corporation (LIC) in two significant tax disputes involving a total amount of Rs 4,993 crore.

The Income Tax Appellate Tribunal issued rulings in favor of LIC in both cases related to the assessment year 2013-14. In one case, the disputed amount is Rs. 1,838.8 crore, while in the second case, the disputed sum is Rs. 3,153.9 crore.

LIC, in a regulatory filing on Tuesday, stated that the Income Tax Department has lodged an appeal with the Honorable Bombay High Court challenging the decision of the Income Tax Appellate Tribunal. The communication regarding this matter was received on October 17, 2023. In the same filing, LIC further mentioned that these legal disputes will not significantly harm the corporation's financial position and operational results.

This recent development follows closely after LIC received notices from the Income Tax Department, demanding a penalty payment of Rs 84 crore. These notices, relating to three assessment years, were issued on September 29.

In the previous month, LIC was also served with a GST notice amounting to Rs 290 crore from the Bihar State Tax Department. The government-owned insurance company had disclosed to the stock exchanges that it intended to file an appeal with the GST Appellate Tribunal challenging the order.