DCM Shriram faces Rs 35.83 crore tax appeal for AY 2016-17
DCM Shriram is facing a tax appeal of Rs 35.83 crore filed by the Principal Commissioner of Income Tax 1, New Delhi, before the Delhi High Court regarding transfer pricing adjustments for AY 2016-17. The appeal challenges an ITAT order dated June 30, 2025, which had ruled in the company's favour. The company stated that the issue is covered in its favour by a Delhi High Court order for AY 2014-15.
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DCM Shriram Limited is facing a tax appeal involving Rs 35.83 crore filed by the Principal Commissioner of Income Tax 1, New Delhi, regarding an Income Tax matter for Assessment Year 2016-17. The appeal was filed before the Hon'ble High Court of Delhi against an order previously passed by the Income Tax Appellate Tribunal (ITAT), Delhi. The dispute relates to transfer pricing adjustments concerning certain specified domestic transactions.
The ITAT had previously ruled in favour of the company regarding the matter for AY 2016-17 through its order dated June 30, 2025. However, the tax authority has now approached the Delhi High Court on certain issues arising from this order. The company noted that the specific issue involved in this litigation is covered in its favour by a Delhi High Court order for the Assessment Year 2014-15.
The matter is currently listed for hearing before the Hon'ble High Court of Delhi. The company received the notice regarding this material litigation on June 19, 2026.
| Particulars | Details |
|---|---|
| Assessment Year | 2016-17 |
| Appellate Authority | Income Tax Appellate Tribunal (ITAT), Delhi |
| Current Forum | Hon'ble High Court of Delhi |
| Tax Effect Involved | Rs 35.83 crore |
| Nature of Dispute | Transfer pricing adjustment on specified domestic transactions |
The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for DCM Shriram Consolidated
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.33% | +2.52% | -4.07% | -13.10% | -9.83% | +40.58% |
How might the outcome of this appeal influence DCM Shriram's future transfer pricing strategies for domestic transactions?
Could this litigation lead to a broader re-assessment of the company's tax liabilities for subsequent assessment years?
What impact could a prolonged legal battle have on the company's cash flow and financial provisions in the upcoming quarters?
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