DCM Shriram has received an Assessment Order for AY 2022-23, resulting in a demand of ₹249.27 Crore (including penal interest). The Assessing Officer assessed total income at ₹1,596.53 Crore against a returned income of ₹1,086.46 Crore, citing transfer pricing adjustments and other additions. The company plans to pursue legal action and file for rectification of the demand.
Assessment Order Details
DCM Shriram has received an Assessment Order issued under relevant sections of the Income Tax Act, 1961, for the Assessment Year 2022-23 (Financial Year 2021-22). This order, dated October 31st, 2025, has led to a demand being raised against the company.
Financial Implications
The Assessing Officer (AO) assessed the total income at ₹1,596.53 Crore, significantly higher than the returned income of ₹1,086.46 Crore. This difference stems from various transfer pricing adjustments and other additions, which the company disputes. The final demand, inclusive of penal interest, amounts to ₹249.27 Crore.
Company Response and Actions
DCM Shriram intends to take appropriate legal action against the assessment order in due course. The company will also file an application with the Assessing Officer to rectify the demand and seek a stay of demand. The company contests that the Assessing Officer has not adequately considered MAT credit and previous directions given by the Dispute Resolution Panel (DRP).
Key Considerations
The Assessing Officer reportedly did not consider available MAT credit and directions from the Hon’ble Delhi High Court, which settled issues for AY 2014-15. Addressing those considerations could reduce the demand significantly. The original adjustments had a tax effect of ₹172.82 Crore. The company also argues that an incorrect levy of interest has been applied.
Source: BSE
