LG Electronics India Limited has informed the Exchange about Draft order issued under section 144C of the Income Tax Act, 1961.
LGEINDIA · price
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LG Electronics India has received a Draft Assessment Order from the Income Tax Department under Section 144C of the Income Tax Act, 1961, for Financial Year 2022-23. The order proposes total disallowances of Rs 5,728 million, of which Rs 2,168.90 million pertains to transfer pricing adjustments that are covered under an existing Advance Pricing Agreement (APA) and would effectively become nil. The company plans to file objections before the Dispute Resolution Panel (DRP) to contest the order. The company has stated there is no financial or operational impact from this draft order at this stage.
This is a routine tax dispute disclosure and not a final liability. The bulk of the disallowance is contested on the basis of an existing APA, reducing real exposure. Shareholders should monitor DRP proceedings, but near-term impact on earnings or operations is expected to be minimal.