DCW Limited Receives Income Tax Demand Order of Rs 4.32 Crores for Assessment Year 2024-25
DCW Limited disclosed receiving an income tax demand order of Rs 4.32 crores from Mumbai IT authorities for AY 2024-25 under Section 143(3). The company contests the demand, citing erroneous computation due to failure to credit Rs 4 crores in advance tax payments. DCW plans to file a rectification application and expects no material financial impact.
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DCW Limited has received an income tax demand order of Rs 4.32 crores from tax authorities for Assessment Year 2024-25, according to a regulatory filing made under SEBI Listing Regulations. The company has indicated its intention to challenge the demand through appropriate legal channels.
Tax Demand Details
The income tax demand order was issued by the Assistant Commissioner of Income Tax, Central Circle-1(4), Mumbai, under Section 143(3) of the Income Tax Act, 1961. The order, dated March 18, 2026, was communicated to the company via email on March 23, 2026.
| Parameter: | Details |
|---|---|
| Issuing Authority: | Asst. Commissioner of Income Tax, Central Circle-1(4), Mumbai |
| Order Section: | Section 143(3) of Income Tax Act, 1961 |
| Assessment Year: | 2024-25 |
| Order Date: | March 18, 2026 |
| Receipt Date: | March 23, 2026 |
| Demand Amount: | Rs 4.32 crores |
Company's Position on Demand
DCW Limited has contested the validity of the tax demand, stating that it has been erroneously computed. The company's primary contention is that the Assessing Officer failed to grant credit for advance tax payments totaling Rs 4 crores that were duly paid by the company.
The company has characterized the demand as not tenable in law and plans to file a rectification application under Section 154 of the Income Tax Act, 1961, to address what it considers an erroneous assessment.
Expected Financial Impact
DCW Limited has assessed that no material impact on its financial position or operations is expected on account of this assessment order. The company's confidence in challenging the demand stems from its belief that the tax authorities have made a computational error in not accounting for the advance tax payments already made.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by Dilip Darji, Sr. General Manager (Legal) & Company Secretary, ensuring compliance with mandatory disclosure requirements for listed entities regarding material developments.
Historical Stock Returns for DCW
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.35% | -1.29% | -16.49% | -42.26% | -49.78% | +52.21% |
How might DCW Limited's stock price and investor confidence be affected if the rectification application under Section 154 is rejected by tax authorities?
What potential precedent could this case set for other companies facing similar advance tax credit disputes with Indian tax authorities?
Will DCW Limited need to make provisions in its upcoming quarterly results while the tax dispute remains unresolved?
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