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Divi's Labs faces ₹570 Cr tax claim
21 Mar
Summary
- Divi's Labs received a draft tax order proposing ₹570.51 crore additions.
- The proposed additions relate to transfer pricing and corporate tax adjustments.
- Penalty proceedings for under-reporting income will be initiated separately.
Divi's Laboratories announced on March 21, 2026, that it received a draft assessment order from the Income Tax Authority. This order proposes additions and disallowances of ₹570.51 crore to the company's returned income for the 2022-23 fiscal year.
The draft order, dated March 20, 2026, was issued by the Assistant Commissioner of Income Tax in Hyderabad. It cites transfer pricing adjustments on specified domestic transactions and corporate tax adjustments as reasons for the proposed upward revision in income. This could lead to an additional income tax liability for Divi's Laboratories.
Furthermore, the company was informed that penalty proceedings under Section 270A of the Income Tax Act will be initiated due to alleged under-reporting of income related to these proposed additions. Divi's Laboratories is currently evaluating the draft order and plans to file an appeal with the appropriate authority within the given timeframe.
In separate financial news, the drugmaker reported a net profit of ₹583 crore for the December quarter, a slight decrease from the previous year and below estimates. Revenue also missed expectations, though operating performance showed resilience with an increase in EBITDA and expanded margins.
