DCM Shriram Faces Rs 249.27 Crore Tax Demand, Plans Legal Action

DCM Shriram Consolidated , a prominent Indian conglomerate, has received a substantial tax demand of Rs 249.27 crore for the Assessment Year (AY) 2022-23, according to a recent disclosure made by the company. This development has raised concerns about potential financial implications for the firm and its ongoing tax disputes.

Assessment Order Details

The company received an Assessment Order dated October 31, 2025, from the Income Tax Department. The order, issued under sections 143(3), 144C(13), and 144B of the Income Tax Act, 1961, has assessed DCM Shriram's total income at Rs 1,596.53 crore, an increase from the company's returned income of Rs 1,086.46 crore.

Key Points of Contention

DCM Shriram has highlighted several issues with the Assessment Order:

Transfer Pricing Adjustments: The order includes various transfer pricing adjustments and other additions, leading to the increased income assessment.
Dispute Resolution Panel (DRP) Directions: The company claims that the Assessing Officer failed to properly implement the directions given by the DRP, New Delhi, in their order dated September 29, 2025.
MAT Credit Oversight: The assessment allegedly does not consider the Minimum Alternate Tax (MAT) credit brought forward and available under section 115JAA.
High Court Precedent: The order reportedly ignores issues settled by the Delhi High Court in the company's case for AY 2014-15, which could have reduced the tax effect by approximately Rs 172.82 crore.
Interest Calculation: DCM Shriram argues that there has been an incorrect levy of interest on the demand.

Financial Implications

The tax demand of Rs 249.27 crore includes penal interest. However, the company asserts that if the MAT credit and the Delhi High Court's previous rulings were considered, the actual demand could potentially be reduced significantly.

Company's Response

DCM Shriram has announced its intention to take appropriate legal action against the assessment order. The company plans to:

File an application with the Assessing Officer to rectify the computed demand.
Seek a stay on the demand.
Pursue necessary legal recourse to challenge the order.

Investor Communication

In compliance with SEBI regulations, DCM Shriram has promptly disclosed this material litigation to the stock exchanges. The company has also made this information available on its official website, ensuring transparency with its investors and stakeholders.

As this tax dispute unfolds, investors and market analysts may closely monitor its potential impact on DCM Shriram's financial position and future performance. The resolution of this matter could have implications for the company's tax liabilities and overall financial health.

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-3.37%	+4.61%	+11.61%	+28.13%	+22.23%	+288.60%

DCM Shriram Consolidated , a prominent player in the Indian agri-rural business sector, has announced a significant change in its senior management. Dr. Paresh Verma, the company's Executive Director and Research Director for the Bioseed Research Business, is slated to retire after more than two decades of service.

Key Details of the Retirement

Aspect	Details
Retiring Executive	Dr. Paresh Verma
Current Position	Executive Director & Research Director - Bioseed Research Business
Effective Date	October 31, 2025 (closing of business hours)
Tenure	Over 23 years

Impact on Company Structure

The retirement of Dr. Verma marks the end of an era for DCM Shriram's Bioseed Research Business. As per the company's announcement, Dr. Verma will cease to be a Senior Management Personnel (SMP) upon his retirement. This change comes as part of the natural progression of leadership within the organization.

Company's Response

DCM Shriram's management has expressed its gratitude for Dr. Verma's long association with the company. The announcement, made in compliance with SEBI regulations, highlights the significant role Dr. Verma has played in leading the Bioseed Research Business for more than two decades.

Regulatory Compliance

The company has duly informed the stock exchanges about this development, adhering to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As the change in Senior Management Personnel is due to retirement, the company noted that a resignation letter is not applicable in this case.

Looking Ahead

While the company has not yet announced a successor for Dr. Verma's position, this transition presents an opportunity for DCM Shriram to potentially bring in new perspectives to its Bioseed Research Business. Stakeholders will likely be keen to see how this change might influence the company's research and development strategies in the agri-business sector going forward.

As DCM Shriram navigates this leadership transition, the market will be watching closely to see how it maintains the momentum in its Bioseed Research Business, a crucial component of its agri-rural portfolio.