Akzo Nobel India has formally disclosed a pending tax matter initiated by the Income Tax Department concerning the Assessment Year 2023-24. A Draft Assessment Order proposes additions of Rs. 111.63 Crores to the company’s income, primarily relating to corporate tax and transfer pricing provisions. The company currently views this as a draft, open to further submission and appeal, and is actively analyzing the order with tax consultants.
Mandatory Disclosure of Litigation
Akzo Nobel India Limited has submitted an intimation regarding litigation pending before the Income Tax Department, as required under regulatory filings. This disclosure pertains to the income tax assessment for the Assessment Year (AY) 2023-24.
Details of the Tax Dispute
The primary subject of the dispute is a Draft Assessment Order received by the Company on March 8, 2026, following the assessment proceedings under Section 143(3) of the Income Tax Act, 1961. The Assessing Officer has proposed additions totaling Rs. 111.63 Crores to the company’s income. These proposed additions are categorized under two main areas: standard corporate tax liability and issues arising from transfer pricing provisions.
Financial Implications and Management View
The expected financial impact from this order cannot yet be definitively determined as the order received is explicitly a Draft Assessment Order. Consequently, the quantum of any final claim is also undetermined at this stage, as the matter remains open for further action by both the taxpayer and the tax department.
Management views the outcome as subject to further submission and appeal before the relevant authorities. The Company has confirmed it is currently in the process of analyzing the Draft Order and preparing its response within the stipulated timeline, consulting closely with external tax consultants.
Source: BSE
