DCM Shriram Consolidated has been penalised Rs 1.59 crore by the Income Tax Department for FY 2021-22 following a dispute over the classification of building sales. The Assessment Unit issued the penalty order on June 29, 2026, under Section 270A of the Income-tax Act, 1961, which the company received on June 30, 2026. The penalty relates to additions made regarding the sale of buildings, which were treated as capital assets rather than depreciable assets in an earlier assessment order dated October 31, 2025.

The company disclosed that it had already filed an appeal (ITTPA No.35/DEL/2025) before the Income Tax Appellate Tribunal (ITAT), Delhi, against the initial additions. The matter was heard by the ITAT on May 26, 2026, and the order is currently awaited. Despite the pending adjudication, the Assessment Unit proceeded to levy the penalty on the additions.

DCM Shriram stated that the penalty lacks merit and ignores the facts of the matter, adding that it will take appropriate legal course of action against the order. The company confirmed that there is no material financial, operational, or other impact except to the extent of the penalty levied.

Details of the Penalty Order

The initial assessment order was passed under Section 143(3) read with Section 144B of the Income-tax Act, 1961. The company contends that the additions were made by treating the sale of buildings as capital assets, ignoring their status as depreciable assets.

DCM Shriram Consolidated has extended the deadline for its proposed acquisition of four industrial salt companies to 31 December 2026. The company cited the pending completion of certain conditions precedent, including necessary approvals, as the reason for the delay. The extension impacts the definitive agreement previously approved by its Board to acquire 100% equity share capital of the entities engaged in producing and selling industrial salt.

The Board of Directors had initially approved entering into the definitive agreement on 28 October 2025. At that time, the company had communicated its expectation that these acquisitions would be completed by June 2026. The parties involved have now mutually agreed to push the closing date to the end of this year to satisfy the remaining regulatory and procedural requirements.

Transaction Details

The acquisition involves the purchase of 100% equity share capital in four distinct companies operating within the industrial salt sector. While the specific names of the target entities were not disclosed in the filing, the nature of their business is focused on the production and sale of industrial salt.

The disclosure was made to the BSE Limited and the National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deepak Gupta, the Company Secretary & Compliance Officer, signed the intimation on 30 June 2026.