News Stocks Dodla Dairy Receives INR 12.2 Lakh Penalty from Income Tax Department for Assessment Year 2017-18Dodla Dairy Receives INR 12.2 Lakh Penalty from Income Tax Department for Assessment Year 2017-18
Dodla Dairy Limited has received a penalty order of INR 12.2 lakhs from the Income Tax Department's Assessing Officer under Section 270A for Assessment Year 2017-18. The penalty relates to Section 14A disallowance and interest expenditure issues previously handled by CIT(A). The company received the order on February 23, 2026, and is evaluating further legal action, maintaining that no violations were committed.
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Dodla Dairy Limited has received a penalty order from the Income Tax Department with a financial impact of INR 12.2 lakhs, according to a regulatory disclosure made on February 24, 2026. The company informed stock exchanges about the action taken by tax authorities under Section 270A of the Income Tax Act, 1961.
Details of the Penalty Order
The penalty order was issued by the Assessment Unit of the Income Tax Department for Assessment Year 2017-18. According to the company's disclosure, the order was passed without considering the merits of the case and relates to specific tax disallowances.
| Parameter: | Details |
|---|---|
| Penalty Amount: | INR 12.2 Lakhs |
| Assessment Year: | 2017-18 |
| Legal Section: | Section 270A of Income Tax Act, 1961 |
| Order Received: | February 23, 2026 |
| Authority: | Assessing Officer, Income Tax Department |
Nature of Tax Issues
The penalty stems from two primary areas of tax dispute:
- Section 14A Disallowance: Related to expenditure incurred in relation to income that does not form part of total income
- Interest Expenditure Disallowance: Previously disallowed by the learned Commissioner of Income Tax (Appeals)
The company has emphasized that the Assessment Unit passed the order without considering the merits of the case, suggesting potential grounds for appeal.
Company's Response and Next Steps
Dodla Dairy has indicated it is currently in the process of evaluating further action against the penalty order. The company has not specified whether it will file an appeal or pursue other legal remedies, but the evaluation suggests active consideration of challenging the decision.
The disclosure was made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding regulatory actions that could impact the company's financial position.
Financial Impact Assessment
While the INR 12.2 lakh penalty represents the quantifiable monetary impact disclosed by the company, the actual financial effect will depend on the outcome of any appeal process the company may pursue. The company has stated that no violations or contraventions were committed, indicating its intention to contest the penalty on substantive grounds.
Historical Stock Returns for Dodla Dairy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.13% | -3.87% | -4.08% | -14.73% | +11.47% | +88.72% |
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