JSW Dulux Limited has received a Final Assessment Order from the Income Tax Department regarding the 2023-24 assessment year. The order includes aggregate additions of Rs. 111.63 crore, primarily involving transfer pricing, R&D expenses, and other corporate tax adjustments. The total tax demand, inclusive of interest, stands at Rs. 36.46 crore. The company intends to challenge this assessment before the appropriate Appellate Authorities, citing strong legal merits in its position.
Overview of Tax Assessment
On May 11, 2026, JSW Dulux Limited received a Final Assessment Order under the Income Tax Act, 1961, covering corporate tax and transfer pricing matters for the 2023-24 assessment year. The tax authorities have made additions totaling Rs. 111.63 crore to the company’s income, citing items such as AMP expenses, research and development costs, and specific transfer pricing adjustments.
Financial Impact
The total demand resulting from this assessment is Rs. 36.46 crore. This figure comprises a principal tax component of Rs. 28.64 crore and an interest liability of Rs. 7.82 crore. Furthermore, the authorities have indicated the initiation of separate penalty proceedings under section 270A of the Income Tax Act.
Company Stance and Future Action
Following an internal review and consultation with external tax experts, the company maintains that its tax filings are robust. JSW Dulux Limited plans to contest the assessment order and the proposed penalty proceedings. The management remains confident that the company holds strong legal merits in this matter and does not anticipate any material adverse financial impact on its operations as it seeks resolution through the appellate process.
Source: BSE
