Fat loss? Not exactly...
The ONLY thing Tabata method was proven to do is increase your anaerobic and aerobic capacity better than standard cardio for one hour. Also, the test subjects were world class speed skaters and did the intervals on exercise bikes (compared to the people who just jogged for an hour). You can look up the original study on the Internet (although it is kind of hard to find).
It probably does burn a lot of calories since you are supposed to go 100% all out during the 20 second intervals, but since it is such a short duration, you might be better off doing lighter intervals for longer periods of time for fat burning. You just can't sustain the type of effort required for Tabata to do it for very long.