DCM Shriram fined ₹1.59 Cr by Income Tax Dept for FY22 penalty

DCM Shriram Ltd has received a penalty order from the Income Tax Department levying a penalty of ₹1.59 crore under Section 270A of the Income-tax Act, 1961, for FY 2021-22 (AY 2022-23). The penalty is related to an addition made on account of the sale of buildings, which the company treated as a capital asset. The company had appealed this addition before the Hon'ble ITAT, Delhi, and the order is awaited. The Income Tax Department has levied the penalty while the matter is still under adjudication. DCM Shriram believes the order lacks merit and intends to take appropriate legal action, stating there is no material financial or operational impact beyond the penalty amount.