Divi’s Laboratories has disclosed receipt of a Draft Assessment Order for the Financial Year 2022-23 from the Income Tax Authority. The order proposes certain additions and disallowances totaling ₹570.51 crores, primarily stemming from Transfer Pricing adjustments on domestic transactions. The company is currently evaluating the Draft Order and intends to file an appeal against the proposed upward adjustment in income within the stipulated time frame.
Disclosure of Draft Tax Assessment Order
Divi’s Laboratories Limited has informed the stock exchanges about the receipt of a Draft Assessment Order issued by the Income Tax Authority. The communication, received on March 21, 2026, relates to the Assessment Year 2023-24, pertaining to the financial period FY2022-23.
Summary of Proposed Adjustments
The core of the communication involves the proposal for certain additions/disallowances amounting to Rs.570.51 crores concerning the returned income. These proposed adjustments are specifically related to:
- Transfer Pricing adjustments on specified domestic transactions.
- Corporate tax adjustments.
Financial Implications and Penalties
The expected financial implication for the listed company is an additional income tax liability corresponding to the upward adjustment in income as mentioned above. Furthermore, the Draft Order indicates that penalty proceedings under u/s.270A of the Income Tax Act, 1961, will be initiated separately for alleged under-reporting of income connected to these additions.
Company Response and Next Steps
The company is currently evaluating the Draft Order. Divi’s Laboratories has confirmed its decision to prefer filing an appeal against the order with the appropriate authority within the mandated timeline. No specific aberrations or non-compliances were identified by the authority beyond the proposed tax adjustments.
Source: BSE
