Colgate-Palmolive India Share Price in Focus; Receives Income Tax Demand of ₹267.64 Crore

Colgate-Palmolive (India) Limited has been issued an assessment order by the Income Tax Department, demanding ₹267.64 crore. This demand arises from transfer pricing adjustments and the disallowance of certain expenses for the financial year 2021-22. 

Details of the Income Tax Demand 

On December 24, 2025, Colgate-Palmolive India received an assessment order under sections 143(3) and 144C(13) of the Income Tax Act, 1961.  

The order, which includes a notice of demand under section 156, was issued by the Assessment Unit of the Income Tax Department. The demand primarily concerns transfer pricing adjustments and the disallowance of certain expenses. 

The assessment pertains to the financial year 2021-22, corresponding to the assessment year 2022-23. Despite the substantial demand, Colgate-Palmolive India has stated that there will be no impact on its financials, operations, or other activities due to this order. 

Company's Response to the Assessment Order 

In response to the assessment order, Colgate-Palmolive India plans to file an appeal with the Income Tax Appellate Tribunal.  

The company is taking this step to contest the demand and seek a resolution. The appeal process is a standard procedure for companies facing similar tax demands. 

Read More: CBDT Requests Taxpayers to Correct Ineligible Deduction Claims Before December Deadline! 

Impact on Colgate-Palmolive India 

Colgate-Palmolive India has clarified that it does not foresee any immediate financial implications. The company has not identified any aberrations or non-compliances in the communication from the tax authorities. Additionally, no penalties, restrictions, or sanctions have been imposed as a result of the assessment order. 

Colgate-Palmolive Share Price Performance  

As of December 26, 2025, at 2:27 PM, Colgate-Palmolive share price on NSE was trading at ₹2,094.00 up by 0.03% from the previous closing price. 

Conclusion 

Colgate-Palmolive India has received an income tax demand of ₹267.64 crore due to transfer pricing adjustments and expense disallowances. The company intends to appeal the order, and no immediate financial impact is expected. The situation will be monitored as the appeal process unfolds. 

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