LG Electronics India Receives Draft Tax Assessment Order for FY23 with ₹572.8 Crore Disallowances
LG Electronics India received a Draft Assessment Order for FY23 from the Income Tax Department. Disallowances total ₹572.8 Million (₹57.28 crore), including ₹216.89 Million (₹21.69 crore) in Transfer Pricing disallowances covered under an Advance Pricing Agreement. The company will file objections with the Dispute Resolution Panel. No financial or operational impact is expected.
The company explicitly states that there will be no financial or operational impact due to this draft assessment order. Furthermore, the significant portion of the disallowance is related to Transfer Pricing and is covered under an Advance Pricing Agreement, which is expected to nullify it. The company's plan to file objections suggests a proactive approach to resolve the matter without immediate consequences.
The announcement concerns a draft tax assessment order with disallowances. While the company plans to contest it and expects no immediate financial impact, the existence of a tax dispute introduces a degree of uncertainty, preventing a purely positive sentiment. The disallowances are significant in nominal terms, but the company's expected nil impact and the Advance Pricing Agreement mitigate immediate negative sentiment.
LG Electronics India Limited has received a Draft Assessment Order for the Financial Year 2022-23 from the Income Tax Authority. The order, dated March 22, 2026, includes disallowances amounting to ₹572.8 Million (₹57.28 crore). This amount comprises ₹216.89 Million (₹21.69 crore) in Transfer Pricing disallowances, which are expected to become nil as they are covered under an Advance Pricing Agreement.
The company intends to file its objections before the Dispute Resolution Panel against this Draft Assessment Order. Despite the disallowances, LG Electronics India Limited has stated that there will be no financial or operational impact on the company as a result of this draft order. The communication was received on March 23, 2026.
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LG Electronics India Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by LG Electronics India Limited. Read the original for the full detail.