Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Nature of the Disclosure

This is a regulatory filing pursuant to Regulation 30 of the SEBI LODR Regulations, informing the exchanges of an order received from the Income Tax Department.

Key Quantitative Figures

The Income Tax Department has levied a penalty of ₹1.59 crore under Section 270A of the Income-tax Act, 1961.

Dates of Action

  • Underlying Assessment Order Date: 31st October 2025
  • Penalty Order Date: 29th June 2026
  • Date of Receipt of Order by Company: 30th June 2026 (received around 10:19 am; Compliance Officer informed around 2:30 pm)
  • Disclosure Date: 1st July 2026
  • ITAT Hearing Date: The appeal against the assessment order was heard by the Income Tax Appellate Tribunal (ITAT), Delhi on 26th May 2026.

Parties or Entities Involved

  • Issuing Authority: Assessment Unit, Income Tax Department
  • Recipient: DCM Shriram Limited
  • Adjudicating Authority (Appeal): Hon'ble ITAT, Delhi

Details of the Violation / Contravention

The penalty stems from an Assessment Order dated 31st October 2025, passed under Section 143(3) read with Section 144B of the Income-tax Act, 1961. The Assessing Officer made additions to the company's income "on account of sale of buildings by treating the same as capital asset (ignoring the fact that it is a depreciable asset) alongwith other adjustments."

Current Status and Company's Response

  • The company had previously filed an appeal against the underlying Assessment Order (dated 31st October 2025) with the ITAT, Delhi (ITTPA No.35/DEL/2025).
  • The appeal was heard on 26th May 2026, and the tribunal's order is currently awaited.
  • The company states that the Assessment Unit proceeded to levy the penalty despite the matter being under adjudication before the ITAT.
  • The company asserts that the penalty order "lacks merit and is ignorant of the facts of the matter" and will "take appropriate legal course of action" against it.

Financial or Operational Impact

As explicitly disclosed: "There is no material impact financially, operationally or otherwise on the Company, except to the extent of penalty levied."