SML Mahindra Limited Receives Appeal Effect Order from Income Tax Dept. with ₹16.41 Lacs Adjustments
SML Mahindra Limited received an appeal effect order from the Income Tax Department, increasing total adjustments to ₹16.41 lakhs for AY 2022-23. The company disputes the Arm's Length Price for corporate guarantee fees and manufacturing segment. SML Mahindra Limited will file an appeal against the order.
The order involves financial adjustments of ₹16.41 lakhs and potential penalty proceedings, which could impact the company's financial performance. However, the company plans to appeal, suggesting the final impact may be mitigated.
The company has received an order from the Income Tax Department with increased financial adjustments and the potential initiation of penalty proceedings. The company's intention to file an appeal indicates disagreement with the order.
SML Mahindra Limited (formerly SML Isuzu Limited) has received an appeal effect order from the Income Tax Department, specifically from the Office of the Assistant Commissioner of Income Tax - Transfer Pricing, Delhi. This order, issued on December 9, 2025, follows directions from the Dispute Resolution Panel (DRP) dated November 22, 2025, concerning Assessment Year 2022-23.
The DRP had previously communicated adjustments of ₹9.92 lakhs on November 22, 2025. The latest order from the Authority, under section 144(C) of the Income-tax Act, has increased the total adjustments to ₹16.41 lakhs. The Income Tax Department may examine the initiation of penalty proceedings under section 270A of the Income-tax Act, 1961.
The company disputes the Arm's Length Price and the method adopted for the payment of Corporate Guarantee fee to the Associated Enterprise (AE), as well as the method for ascertaining the Arm's Length Price in the manufacturing segment. SML Mahindra Limited intends to file an appeal against this order. The company received this order on December 10, 2025, at 03:12 PM, downloaded from the Income Tax portal.
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