DCM Shriram faces $249.27 crore tax demand for AY 2022-23

DCM Shriram announced it has received an assessment order under the Income Tax Act, 1961, for Assessment Year 2022-23 (Financial Year 2021-22), dated October 31, 2025. The assessing officer has assessed the company's total income at $1,596.53 crore, higher than the returned income of $1,086.46 crore. This has resulted in a demand of $249.27 crore, including penal interest, due to transfer pricing adjustments and other additions.

The company noted that the assessing officer did not consider several factors, including MAT credit brought forward under section 115JAA and directions from the Dispute Resolution Panel regarding issues settled by the Delhi High Court for AY 2014-15. These omissions, if addressed, would have prevented additions with a tax effect of $172.82 crore and eliminated the incorrect levy of interest.

DCM Shriram intends to pursue appropriate legal actions against the assessment order and will file an application with the assessing officer to rectify the demand and request a stay. The company expects to address these discrepancies in due course.