Divi’s Laboratories has received a draft assessment order from the Income Tax Department, indicating potential revisions to its reported income for the latest assessment year.
The company has been issued a draft order under Section 144C (1) of the Income Tax Act for FY2022–23 (Assessment Year 2023–24), proposing additions of ₹570.51 crore to its declared income.
These proposed adjustments are primarily linked to transfer pricing changes in specified domestic transactions, along with certain corporate tax-related modifications. Since the order is at a draft stage, the liability is not final and remains subject to further review.
The tax authority has also indicated that penalty proceedings under Section 270A may be initiated separately for alleged under-reporting of income.
This introduces an additional layer of financial risk, although the final implications will depend on how the case progresses through the regulatory process.
Divi’s Laboratories has stated that it is currently evaluating the draft order and intends to file an appeal before the appropriate authority within the stipulated timeline.
Given that the assessment is not yet finalised, the company has the opportunity to contest the proposed additions, which is a standard course in such tax matters.
While the proposed adjustments could result in additional tax liability if upheld, the actual financial impact remains uncertain at this stage and will depend on the outcome of appellate proceedings.
Such disputes, particularly those involving transfer pricing, often undergo multiple levels of scrutiny before reaching final resolution.
As of March 23, 2026, at 9:40 AM, Divis Laboratories share price is trading at ₹6,026.50 per share, reflecting a decline of 1.20% from the previous closing price.
The draft tax order represents a significant but preliminary development for Divi’s Laboratories. With the company set to challenge the findings, the matter is likely to evolve through legal proceedings, making the eventual financial impact dependent on the final adjudication rather than an immediate liability.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 23, 2026, 9:46 AM IST
Team Angel One
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