Divi's Laboratories Limited has informed the Exchange about Draft Order issued under Section 144C(1) of the Income Tax Act, 1961 for FY2022-23.
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Divi's Laboratories has received a Draft Assessment Order from the Income Tax Authority for FY2022-23 (Assessment Year 2023-24) under Section 144C(1) of the Income Tax Act. The order proposes additions and disallowances of Rs. 570.51 crore to the company's returned income, arising from Transfer Pricing adjustments on specified domestic transactions and certain corporate tax adjustments. The company has stated that penalty proceedings under Section 270A may be initiated separately for alleged under-reporting of income. Divi's Labs is evaluating the order and intends to file an appeal before the appropriate authority within the stipulated time. The matter relates to routine income tax assessment, not a SEBI or stock exchange regulatory action.
The proposed Rs. 570.51 crore addition, if upheld after appeal, would result in a significant additional tax liability for the company. However, since this is only a draft order and the company plans to contest it, the near-term impact is likely limited to overhang and sentiment, with the final outcome depending on the appeal process.