TVS Supply Chain Solutions Limited has formally filed an appeal before the Commissioner of Income Tax (Appeals) regarding a disputed tax order. The litigation pertains to the disallowance of claimed expenses and variations in transfer pricing adjustments. The company maintains that the tax demand, which amounts to ₹8.99 crore, will not have a material impact on its ongoing operations or overall financial health, and it is currently seeking a stay on the order.
Dispute Background
The company has initiated formal legal proceedings in response to an assessment order issued under Section 143(3) read with Section 144C(3). The dispute stems from the Income Tax Department’s decision to disallow certain expenses previously claimed by the company, alongside adjustments related to transfer pricing practices. As part of its legal strategy, the company has officially contested these findings by filing an appeal with the Commissioner of Income Tax (Appeals).
Financial Outlook
The total quantum of the claim in dispute stands at ₹8.99 crore. Despite this development, the company’s management has expressed confidence in their position, stating that the tax demand is not expected to cause a material impact on the company’s financials, operations, or its ongoing business activities. In an effort to mitigate potential immediate financial strain, the company has taken proactive steps to seek a stay on the tax demand while the appellate process remains ongoing.
Source: BSE
