Carraro India Limited has informed the Exchange about draft assessment order from Income Tax Department.
CARRARO · price
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Carraro India has received a Draft Assessment Order from the Income Tax Department's faceless assessment unit, following an earlier Show Cause Notice. The draft order has actually reduced the proposed tax adjustments in the company's favour. Transfer pricing-related additions have been brought down to about Rs. 61.73 crore, and other corporate tax adjustments have dropped sharply from around Rs. 27.64 crore to just Rs. 52.6 lakh. The company plans to file an appeal before the appropriate forum to further contest the remaining adjustments. Management has stated there is no immediate impact on financial, operations, or other activities, and expects to receive favourable relief.
On the surface, this is a mildly positive development because the Income Tax Department itself has lowered the disputed tax amount significantly. However, the underlying tax demand still exists and will go through appeal, so the final outcome remains uncertain. Shareholders should not expect an immediate financial hit, but should watch the appeal process for resolution.