Divi's Laboratories Receives Draft Assessment Order from Income Tax Authority
Divi's Laboratories Limited announced today, March 21, 2026, receipt of a Draft Assessment Order from the Income Tax Authority. The order, dated March 20, 2026, concerns the financial year 2022-23 (assessment year 2023-24).The Assistant Commissioner of Income Tax, Central Circle-2(1), Hyderabad, issued the Draft Order, proposing additions and disallowances totaling Rs. 570.51 crores to the company's returned income. These adjustments stem from Transfer Pricing adjustments on specified domestic transactions and corporate tax adjustments.
The company anticipates an increased income tax liability reflecting the upward adjustment in income. Additionally, the Draft Order indicates that penalty proceedings under Section 270A of the Income Tax Act, 1961, will be initiated separately regarding alleged underreporting of income.
Divi's Laboratories is currently evaluating the Draft Order and intends to file an appeal against it with the appropriate authority.
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