Dabur India Faces Tax Demand of ₹110.33 Crore from Income Tax Authority

Dabur India Limited has received an income tax re-assessment order for the financial year 2017-18, resulting in a tax demand of ₹110.33 crores. The demand arises from reassessment proceedings under Section 263 of the Income Tax Act, 1961.

The dispute primarily concerns alleged wrongful tax deductions claimed by the company. Dabur intends to challenge the order through appropriate legal forums.

Details of the Tax Dispute

The tax demand has been issued by the Office of the Assistant Commissioner of Income Tax, Circle 7(1), Delhi. The reassessment order questions Dabur’s tax deductions on in-house research and development expenses and Section 14A of the Act.

The company asserts that a substantial portion of the demand has resulted from the inadvertent inclusion of income previously accounted for in the original assessment order for AY 2018-19. Additionally, a demand of ₹36.77 crores has been raised without proper discussions in the order.

Financial Implications and the Company’s Response

Dabur India Limited is set to contest the order by filing an appeal before the Commissioner of Income Tax (Appeals) and, if required, higher appellate authorities.

The company also plans to submit a rectification petition under Section 154 to correct the computation of demand, which may significantly reduce the final liability. Despite the ongoing proceedings, Dabur maintains that the financial implications will be minimal, as it believes the case has strong legal merit.

Dabur Share Performance 

As of April 02 2025, at 9:30 AM, Dabur share price was trading at ₹490.25, reflecting a decline of 1.46% from its previous closing price. Over the past month, it has declined by 0.31%.

Conclusion

The tax dispute between Dabur India and the Income Tax Authority highlights the complexities of corporate taxation and reassessment procedures. While the company is confident in its legal position, the final outcome will depend on the appellate proceedings and potential rectifications in the tax computation.

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