Pune, January 29, 2025 – Carraro India Limited (NSE: CARRARO, BSE: 544320) has received an assessment order from the Office of the Assistant Commissioner of Income Tax, Transfer Pricing (TPO), Pune, regarding transfer pricing adjustments for the assessment year (AY) 2022-23.
Key Developments
- Transfer Pricing Adjustment: The TPO has proposed adjusting the value of international transactions carried out by Carraro India with its overseas related parties.
- Dispute Over Benchmarking Methodology: The assessment order was passed, disregarding the company's justifications and modifying the benchmarking approach without an adequate hearing opportunity.
- Total Tax Liability: ₹17,84,12,304 (₹17.84 crores) in additional income tax liability.
Company's Response & Appeal Process
- Appeal Before CIT(A): Carraro India will contest the adjustments before the Commissioner of Income-tax Appeals (CIT(A)).
- Alternate Dispute Resolution: The company has filed an Advance Pricing Agreement (APA) application covering the assessment year in question, expecting relief from the transfer pricing adjustment.
- No Immediate Financial Impact: The company stated that the order does not impact ongoing operations, financial position, or other activities.
Regulatory & Compliance Disclosure
- The order was received on January 28, 2025, at 7:16 PM.
- The disclosure was under the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
- The company remains optimistic about obtaining relief through legal avenues.