The Company has received Draft Assessment Order under section 144C(1) of the Income Tax Act, 1961 for the Assessment Year 2023-24.
FRACTAL · price
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Fractal Analytics has received a Draft Assessment Order from the Income Tax Department under section 144C(1) of the Income Tax Act for Assessment Year 2023-24 (FY 2022-23). The order proposes total additions of INR 156.56 crore on account of transfer pricing and corporate tax adjustments. Since this is only a draft order, there is no immediate tax demand payable — the demand will only crystallise after a final assessment order. The company also noted that penalty proceedings under section 270A may be initiated separately for alleged under-reporting of income. Fractal plans to contest the order by filing objections before the Dispute Resolution Panel (DRP). The disclosure was delayed by a day as the order was received after business hours on March 24, 2026.
A proposed tax addition of INR 156.56 crore is sizeable relative to typical earnings, but since it is only a draft order and the company intends to contest it through the DRP, there is no immediate cash outflow. The development is likely to be viewed negatively by the market in the short term, though the final outcome will depend on the DRP and subsequent proceedings.