DCM Shriram has received an order from the Income-tax Appellate Tribunal (ITAT), New Delhi, regarding tax litigation for Assessment Year 2021-22. The order provided a partial relief, resulting in a tax effect reduction of ₹9.79 crore out of a total contested amount of ₹12.20 crore. The company noted that this specific adjudication has no material impact on its current profit and loss statement.
Update on AY 2021-22 Tax Litigation
DCM Shriram Ltd. informed exchanges that it has received an order dated March 18, 2026, from the Income-tax Appellate Tribunal (ITAT), New Delhi, concerning tax proceedings for Assessment Year 2021-22. This update follows previous communications regarding this material tax litigation.
ITAT Adjudication Details
The ITAT adjudicated the matter arising from an appeal against an order under Section 143(3) read with Section 144C(13). The financial breakdown of the adjudication is as follows (figures in ₹ Crores):
- Total Tax Effect Involved (A): 12.20
- Relief Granted (B): (9.79)
- Matters Referred Back to Assessing Officer (C = A – B): 2.41
The company explicitly stated that the outcome of this specific order has no material impact on the profit and loss of the Company for the period under review.
Reference to Other Additions
The announcement also referenced earlier unwarranted additions made under Section 143(1) dated October 25, 2022, which are being appealed separately. These additions amounted to Rs. 238.02 crore, with a corresponding tax effect of Rs. 83.17 crore. These older matters were previously adjudicated via an ITAT order dated July 30, 2025, and subsequently referred back to the Assessing Officer on August 11, 2025, for de novo adjudication.
Status of Other Proceedings
Regarding litigation against key management personnel or promoters, and any potential settlements, the status remains N.A. (Not Applicable) at this time.
Source: BSE
