Income Tax Penalty Levied Against DCM Shriram Limited for FY 2021-22; Company Appeals to ITAT
DCM Shriram Limited has received a penalty order from the Income Tax Department related to the sale of buildings during Financial Year (FY) 2021-22. The Assessment Unit levied a penalty totaling Rs. 1.59 crore after making additions on account of building sales in the company's tax assessment.The Penalty Order, dated June 29, 2026, pertains to violations committed or alleged regarding the sale of buildings. The Assessing Officer had made additions concerning these assets while treating them as capital assets, in addition to other adjustments.
The penalty was imposed by the Assessment Unit, Income Tax Department, for the assessment year (AY) 2022-23 under Section 270A of the Income-tax Act, 1961. The order followed an earlier decision passed on October 31, 2025, under Section 143(3) read with Section 144B of the Act.
DCM Shriram Limited has challenged the Assessment Order by appealing before the Hon'ble ITAT, Delhi, under appeal number ITTPA No.35/DEL/2025. The matter was heard by the ITAT on May 26, 2026, and a decision is currently awaited.
The company noted that the Assessment Unit proceeded to levy the penalty despite the matter being under adjudication before the ITAT.
Financial Impact
While the penalty has been levied, there is no material financial or operational impact on DCM Shriram Limited other than the amount of the penalty itself. The details of the tax action are summarized below:
| Particular | Details |
|---|---|
| Issuing Authority | Assessment Unit, Income Tax Department |
| Assessment Period (FY) | 2021-22 |
| Penalty Imposed Amount | Rs. 1.59 crore |
| Basis of Addition | Sale of buildings treated as capital asset by the Assessing Officer |
| Appeal Status | Matter pending before ITAT, Delhi |
DCMSHRIRAM Stock Price Movement
DCM Shriram Limited shares settled on Wednesday, edging up by 0.22% to close at ₹1014.00. The stock traded within a narrow range for the session, finding support as the price moved between ₹1005 and ₹1065.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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