TVS Supply files appeal against ₹8.99 crore tax demand

TVS Supply Chain Solutions Limited has filed an appeal before the Commissioner of Income Tax (Appeals) against a tax demand of ₹8.99 crores. The appeal was filed on May 22, 2026, pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The litigation arises from an order issued under Section 143(3) read with Section 144C(3) of the Income Tax Act. The order disallowed expenses claimed by the company and involved variations in transfer pricing adjustments. The opposing party in the matter is the Assessment Unit, Income Tax Department.

Details of the Dispute

The company has provided specific details regarding the litigation and the financial implications involved. The key points of the dispute are outlined below:

Aspect	Details
Authority	Commissioner of Income Tax (Appeals)
Opposing Party	Assessment Unit, Income Tax Department
Dispute Nature	Appeal against order disallowing expenses and transfer pricing adjustments
Quantum of Claim	₹ 8.99 crores

Financial Impact and Outlook

Regarding the expected financial implications, the company stated that based on the merits of the case, the tax demand is not expected to have a material impact on its financials, operations, or other activities. Additionally, the company has taken necessary steps to seek a stay on the demand.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.99%	+5.72%	+7.24%	+6.73%	-5.61%	-39.52%

FIT 3PL Warehousing Private Limited, a wholly owned subsidiary of tvs supply chain solutions , has completed a primary investment of ₹59,56,43,370 in Swamy & Sons 3PL Private Limited. The investment was executed pursuant to definitive agreements for the proposed acquisition of 100% of the paid-up share capital of the target entity through a combination of primary and secondary acquisitions. Following this transaction, Swamy & Sons 3PL Private Limited has allotted 40,000 equity shares to FIT 3PL.

Strategic Expansion

The acquisition is aimed at facilitating business expansion and strengthening capabilities in the Fast-Moving Consumer Goods (FMCG) and Fast-Moving Consumer Durables (FMCD) segments. The company expects this move to drive revenue and profit growth. The target entity, Swamy & Sons 3PL Private Limited, is a newly incorporated company formed by the Swamy Sons Group and headquartered in Hyderabad. It was established to acquire the business undertakings of Swamy Sons Group, which includes Swamy Sons (Agencies) Private Limited, Sovereign Enterprises, and Crystal Marketing Corporation.

Financial Overview

The Business Undertakings being acquired have reported a consolidated turnover of ₹207.1 crores for the financial year 2024-25. The transaction does not qualify as a related party transaction, and the promoters or promoter group do not hold any interest in the entity being acquired. The consideration for the acquisition was paid entirely in cash.

Turnover of Business Undertakings

Financial Year	Turnover
FY 2022 – 23	₹215.4 crores
FY 2023 – 24	₹210.3 crores
FY 2024 – 25	₹207.1 crores

Transaction Structure

The acquisition is being executed in two tranches. Tranche 1, involving the subscription of 40,000 equity shares, has been completed, resulting in FIT 3PL holding 80% of the paid-up share capital. The company plans to complete the acquisition of the remaining share capital on or before September 30, 2027. This final phase, referred to as Tranche 2, will involve the secondary acquisition of all equity shares held by the founding shareholders, after which FIT 3PL will hold 100% of the paid-up share capital of Swamy & Sons 3PL Private Limited.