News Stocks DIC India Limited Receives Income Tax Draft Order for Rs 3.84 Crore Upward AdjustmentDIC India Limited Receives Income Tax Draft Order for Rs 3.84 Crore Upward Adjustment
DIC India Limited has received a draft order from the Income Tax Department for an upward adjustment of Rs 3,84,17,653 in income for FY 2022-23, related to transfer pricing issues. The company plans to file an appeal against the order while facing additional penalty proceedings under Section 270A for alleged under-reporting of income.
*this image is generated using AI for illustrative purposes only.
DIC India Limited has informed stock exchanges about receiving a draft order from the Income Tax Department that proposes a significant upward adjustment in its reported income for the financial year 2022-23.
Tax Department Order Details
The Income Tax Department has issued a draft order under Section 144C(1) of the Income-tax Act 1961, making an upward adjustment of Rs 3,84,17,653 in the company's income for FY 2022-23 (Assessment Year 2023-24). The order was dated March 02, 2026, and received by the company on the same day.
| Parameter | Details |
|---|---|
| Order Amount | Rs 3,84,17,653 |
| Applicable Period | FY 2022-23 (AY 2023-24) |
| Order Date | March 02, 2026 |
| Legal Section | Section 144C(1) of Income-tax Act 1961 |
Transfer Pricing Adjustments
The upward revision in income stems from transfer pricing adjustments made by the Income Tax Department across various accounts. The order specifically addresses alleged discrepancies in the company's transfer pricing practices, which involve transactions between related entities.
Company's Response Strategy
DIC India Limited has stated that it is currently evaluating the draft order and intends to file an appeal against it with the appropriate authority within the stipulated timeframe. The company maintains that it will challenge the department's findings through proper legal channels.
Additional Penalty Proceedings
Beyond the income adjustment, the Income Tax Department has initiated separate penalty proceedings under Section 270A of the Income-tax Act 1961 for alleged under-reporting of income. This adds another layer of regulatory scrutiny to the company's tax compliance matters.
| Compliance Aspect | Status |
|---|---|
| Main Order | Draft order under Section 144C(1) |
| Penalty Proceedings | Initiated under Section 270A |
| Company Action | Planning to file appeal |
| Financial Impact | Additional tax liability expected |
Financial Implications
The company has disclosed that the expected financial implications include additional income tax liability on the upward adjustment amount. However, DIC India Limited has indicated that there is no other impact beyond what has been stated in the disclosure, pending the outcome of its planned appeal process.
Historical Stock Returns for DIC India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.16% | -4.27% | +2.63% | -10.72% | -24.26% | +28.74% |
20
