TVS Srichakra Faces ₹551 Cr Tax Blow: Dept Order Upholds Demand & Penalty

Order Details

The Assistant Commissioner of Income Tax issued the order on December 26, 2025, affirming the original demand notice. It pertains to assessment years involving adjustments on deductions, provisions, and transfer pricing disputes common in auto ancillary filings. TVS Srichakra holds strong liquidity with ₹300+ crore cash reserves as of Q2 FY26.

Key Highlights

• Demand Breakdown: Principal tax ₹410 million + penalty/interest ₹141.1 million, totaling ₹551.1 million.
• ​Timeline: Original notice in FY23 reassessment; appellate confirmation leaves door open for ITAT/high court challenge.
• ​Financial Impact: Represents ~2-3% of FY25 revenue (₹3,800 Cr); stock dipped 1.5% intraday to ₹4,250 amid sector volatility.
• ​Company Response: Evaluating legal remedies; no provision booked yet, per exchange filing norms.

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Sources: BSE Announcements, Moneycontrol, Economic Times