JSW Dulux Faces Tax Demand of Rs. 36.46 Crore Following Final Assessment Order
JSW Dulux Limited, formerly Akzo Nobel India Limited, has reported receiving a Final Assessment Order from the Income Tax Department pertaining to tax and corporate matters for the Assessment Year (AY) 2023-24.The dispute involves the Income Tax Department Assessment unit, concerning the nature of final assessment for AY 2023-24 that includes transfer pricing and general corporate tax matters. The Company received the Final Assessment Order under Section 143(3) read with Section 144C(3) and Section 144B of the Income Tax Act, 1961, on May 11, 2026.
The assessment order includes additions aggregating to Rs. 111.63 crore. These additions primarily relate to AMP expenses, R&D expenses, contract R&D expenses, transfer pricing adjustments, and other corporate tax matters. The department also mentioned the initiation of penalty proceedings under Section 270A of the Income Tax Act separately.
Financial Implications of the Assessment
The financial assessment reveals a significant tax demand and associated penalty proceedings.| Particulars | Details |
|---|---|
| Tax Demand (Including Interest) | INR 36.46 crore |
| Quantum of Claims (Detailed) | Tax demand of Rs. 36,46,50,330/- (comprising tax amounting to Rs. 28,64,26,801/- and interest amounting to Rs. 7,82,13,529/-). |
| Penalty Status | Subject to penalty proceedings u/s 270A of the Income Tax Act. |
Management Outlook
Regarding the outcome of the dispute, the Company stated that based on internal assessments and advice from tax consultants, it believes the matter has strong merits. Consequently, JSW Dulux Limited expects no material financial impact and intends to challenge the Final Assessment Order and the penalty proceedings u/s 270A before the appropriate Appellate Authorities.JSWDULUX Stock Price Movement
As of 2:04 PM, shares of JSW Dulux Limited are shedding 4.59% in live trading, currently trading at ₹2905.3. The stock saw notable selling pressure during the session, recorded on a volume of 11,324 shares.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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