Divi's Labs Faces Rs 570 Crore Tax Adjustment Proposal in Draft IT Order, Plans Appeal
New Delhi: Divi's Laboratories Limited has received a draft assessment order from the Income Tax Authority proposing additions/disallowances amounting to Rs 570.51 crore for the financial year 2022-23 (assessment year 2023-24).
The company disclosed that the draft order, issued under Section 144C(1) of the Income Tax Act, 1961, was dated March 20, 2026, and received on March 21, 2026, from the Assistant Commissioner of Income Tax, Central Circle-2(1), Hyderabad.
According to the details provided in the filing, the proposed additions are primarily on account of transfer pricing adjustments related to specified domestic transactions, along with corporate tax adjustments. These adjustments have been made with respect to the income returned by the company for the relevant financial year.
The company stated that the draft order could result in additional income tax liability arising from the upward adjustment in income, if finalized. However, no specific instances of aberrations or non-compliances have been identified by the authority in the communication.
Further, the draft order also indicates that penalty proceedings under Section 270A of the Income Tax Act, 1961 may be initiated separately for alleged under-reporting of income in relation to the proposed additions.
Divi’s Laboratories has stated that it is currently evaluating the draft assessment order and intends to file an appeal before the appropriate authority within the stipulated timeline.
Also Read: Thyroid Antibodies May Predict Heart Disease and Stroke Risk, Major Analysis Finds
