Intimation for Update on Material Tax Litigation is attached.
REGULATORY
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 04 Jul 2026, 06:47 PM IST · BSE ID: 0e1e18af-bf42-425e-afc7-66c687aafd1c
View Original BSE Filing (PDF)
💡
In Simple Terms
The tax tribunal reduced a Rs. 249.27 Crore tax demand by correcting calculations and allowing prior tax credits.
🤖 AI Summary
- ITAT granted partial relief on Rs. 178.24 Crore tax additions for AY 2022-23.
- ITAT ordered correction of computational errors and MAT credit set off.
- Original demand of Rs. 249.27 Crore raised by AO remains subject to ITAT directions.
- Company will apply to AO to give effect to ITAT order and delete demand.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Tax effect of the additions made by AO (A)
178.24
Tax effect of the Relief Granted (B)
(172.82)
Tax effect of the matters referred back to AO (C = A - B)
5.42
Original demand by AO dated 31st October 2025
Rs. Rs.249.27 Crore
AY (FY)
2022-23 (FY 2021-22)
🏢 How This Affects the Company
The ITAT order may lead to a reduction in the Rs. 249.27 Crore tax demand previously raised by the Assessing Officer.
Reduces the immediate financial risk associated with the Rs. 249.27 Crore tax demand, subject to the AO's order giving effect to the ITAT ruling.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required from shareholders.
👤
Who Is Affected
All shareholders are affected by the potential reduction in the company's contingent tax liabilities.
🔍
Management Signal
Management is actively pursuing all available legal avenues to contest and reduce tax liabilities.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
AO's order giving effect to ITAT directions.
Confirmation of deletion of Rs. 249.27 Crore demand.
Next update on outstanding tax litigation status.
MEDIUM RISK
Ongoing tax litigation with a substantial demand pending final resolution by the Assessing Officer.
💡 Investor Takeaway
DCM Shriram received ITAT relief on Rs. 178.24 Crore tax additions for AY 2022-23, impacting a Rs. 249.27 Crore demand. The company will seek AO order for demand deletion.
⚖️ Strengths & Concerns
✅ Positives
- ITAT provided partial relief, reducing the tax effect of additions from Rs. 178.24 Crore to Rs. 5.42 Crore.
- ITAT directed correction of computational errors, including set off of brought forward MAT Credit.
⚠️ Concerns
- An addition of Rs. 5.42 Crore made by the AO remains subject to further review by the AO.
- The company faces a pending application to the AO to delete the Rs. 249.27 Crore demand.
📅 Company Track Record
DCM Shriram has faced prior tax litigation. A March 19, 2026 filing indicated ITAT granted partial relief on a Rs. 12.20 Crore tax dispute, with Rs. 2.41 Crore remaining unresolved.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What is the latest update on DCM Shriram's material tax litigation for AY 2022-23?
The Income-tax Appellate Tribunal (ITAT) has issued an order dated July 3, 2026, providing partial relief on additions made by the AO.
What was the tax effect of additions made by the Assessing Officer in the ITAT case?
The tax effect of additions made by the AO under section 143(3) r.w.s. 144C (13) was Rs. 178.24 Crore.
What relief did the ITAT grant to DCM Shriram in this matter?
The ITAT granted a relief of Rs. (172.82) Crore, leaving a tax effect of Rs. 5.42 Crore for matters referred back to the AO.
What was the original tax demand raised by the Assessing Officer?
The Assessing Officer had raised a demand of Rs. Rs.249.27 Crore vide order dated October 31, 2025.
What action will DCM Shriram take next regarding the ITAT order?
The company will file an application before the Assessing Officer to give effect to the ITAT directions and delete the demand of Rs. Rs.249.27 Crore.
Questions based on this BSE filing only. For information purposes.