DCM Shriram Limited received a penalty order from the Assessment Unit of the Income Tax Department on June 30, 2026, around 10.19 am. The order, dated June 29, 2026, was issued under Section 270A of the Income-tax Act, 1961, for FY 2021-22 (AY 2022-23), levying a penalty of Rs 1.59 crore related to an addition on account of sale of buildings.
The addition was made via an Assessment Order dated October 31, 2025, passed under Section 143(3) read with Section 144B of the Income-tax Act. The Assessing Officer treated the sale of buildings as a capital asset rather than a depreciable asset. DCM Shriram filed an appeal before the ITAT, Delhi, vide ITTPA No.35/DEL/2025 against the said addition.
The ITAT heard the matter on May 26, 2026, and the order is awaited. The Assessment Unit proceeded to levy the penalty on the addition despite the matter being under adjudication before the tribunal. DCM Shriram was informed of the penalty order around 2.30 pm on June 30, 2026.
DCM Shriram plans to take appropriate legal action against the penalty order, stating it lacks merit and is ignorant of the facts of the matter. The company said there is no material impact financially, operationally, or otherwise, except to the extent of the penalty levied.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.