SML Mahindra Faces Rs 168.64 Lakh Transfer Pricing Adjustment from Income Tax Department

SML Mahindra Limited , a player in the automotive sector, has encountered a setback in its recent tax dispute. The Transfer Pricing Officer has passed an order under Section 92CA(3) of the Income-tax Act, 1961, potentially impacting the company's financial position.

Key Developments

Transfer Pricing Adjustment: The order includes transfer pricing adjustments amounting to Rs 168.64 lakhs to SML Mahindra's international transactions.
Disputed Areas: The tax authority has questioned the company's methodology in two key areas:
- The arms length pricing methods for the manufacturing segment
- The method used for corporate guarantee fee payments to associated enterprises
Company's Response: SML Mahindra plans to file an appeal against this order.
Potential Penalties: The company may face penalty proceedings under section 270A of the Income-tax Act.

Transfer Pricing Dispute Details

Aspect	Details
Adjustment Amount	Rs 168.64 lakhs
Disputed Areas	1. Arms length pricing methods for manufacturing segment 2. Corporate guarantee fee payment method
Next Steps	Appeal against the order
Potential Consequences	Penalty proceedings under section 270A

Company Response

SML Mahindra Limited has stated its intention to contest the decision. The company plans to file an appeal against the order passed by the Transfer Pricing Officer. This move indicates that SML Mahindra is prepared to pursue further legal avenues to challenge the transfer pricing adjustments.

Implications for Investors

Investors and stakeholders of SML Mahindra Limited should closely monitor the developments in this tax dispute. The adjustment amount of Rs 168.64 lakhs could potentially impact the company's financial position. Additionally, the possibility of penalty proceedings adds another layer of financial risk.

As the situation evolves, it will be crucial to watch for any updates on the company's appeal and the outcome of potential penalty proceedings. These developments may provide further insights into the potential financial implications and the company's approach to managing its tax affairs.

The resolution of this dispute could affect the company's tax planning strategies. Stakeholders should stay informed about the progress of this case and its potential impact on SML Mahindra's operations and financial performance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.25%	+2.98%	+31.95%	+111.14%	+154.15%	+720.98%

SML Isuzu Limited , a prominent player in the trucks and buses segment, has officially changed its name to SML Mahindra Limited. This corporate action, approved by the Registrar of Companies and both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), took effect on November 10, 2025.

Key Changes

The company has undergone several important updates:

Aspect	Previous	New
Company Name	SML Isuzu Limited	SML Mahindra Limited
NSE Trading Symbol	SMLISUZU	SMLMAH
BSE Scrip ID	SMLISUZU	SMLMAH
BSE Scrip Code	505192	505192

Corporate Details

SML Mahindra Limited continues to operate in the trucks and buses segment, with its registered office located in Punjab. The company's corporate office is situated at 204-205, Sector 34-A, Chandigarh – 160022.

Investor Information

Investors and market participants should take note of these changes, particularly the new trading symbol 'SMLMAH' on both the NSE and BSE. The BSE scrip code remains unchanged at 505192, providing continuity for existing investors and systems.

Management Statement

Parvesh Madan, Company Secretary & Compliance Officer of SML Mahindra Limited, officially communicated these changes to the stock exchanges. The company has ensured a transition in its corporate identity while maintaining its core business operations.

This rebranding marks a significant milestone for the company. Investors and stakeholders are advised to update their records and trading systems to reflect these changes, ensuring seamless transactions and communications with the newly rebranded SML Mahindra Limited.