Carraro India Challenges Transfer Pricing Order, Plans Appeal

Carraro India Limited has formally disclosed to stock exchanges that it received a transfer pricing assessment order from the Office of the Assistant Commissioner of Income Tax, Transfer Pricing, Pune, on 22 January 2026. 
The order, passed under Section 92CA(3) of the Income Tax Act, proposes adjustments to international transactions with overseas related parties.

Key Highlights:

• Authority Involved: Assistant Commissioner of Income Tax, Transfer Pricing, Pune.
• Nature of Order: Assessment order modifying the company’s benchmarking approach and proposing adjustments.
• Financial Impact: Potential additional income-tax liability of ₹15,53,84,904.

Company’s Response:

• Plans to file an appeal before the Commissioner of Income-tax Appeals CIT(A)].
• Already filed an Advance Pricing Agreement (APA) application covering the year in question.
• Confident of receiving relief from the adjustment in due course.
• Operational Impact: No immediate effect on financial or operational activities; matter remains under dispute resolution.

Carraro India emphasized its commitment to contesting the order and maintaining compliance with regulatory requirements, while assuring stakeholders of minimal disruption to ongoing operations.

Sources: Company filing to BSE & NSE, SEBI Listing Regulations disclosure