Divis Laboratories Receives Draft Order for FY2022-23 from Income Tax Authority

Divis Laboratories Ltd. has received a Draft Order under Section 144C(1) of the Income Tax Act, 1961 from the Assistant Commissioner of Income Tax, Central Circle-2(1), Hyderabad. The order pertains to the FY2022-23 (Assessment year 2023-24) and proposes certain additions/disallowances amounting to Rs.570.51 crores. The additions are on account of Transfer Pricing adjustments on specified domestic transactions and corporate tax adjustments. The Company is evaluating the Draft Order and plans to file an appeal against the same within the stipulated time. As per the Draft Order, penalty proceedings u/s.270A of the Income Tax Act, 1961 will be initiated separately for alleged under reporting of income in respect of the above addition.