Carraro India Gets Major Tax Relief as Draft Assessment Order Cuts Corporate Tax Adjustment to Rs 52.6 Lakh
Carraro India Gets Major Tax Relief as Draft Assessment Order Cuts Corporate Tax Adjustment to Rs 52.6 Lakh
Carraro India Limited has recently informed the stock exchanges about the receipt of a draft assessment order from the Faceless Assessment Unit of the Income Tax Department on March 9, 2025, where the department has revised the tax adjustments.
Background of the Case
Carraro India had initially received a Show Cause Notice (SCN) in February 2026 from the Income Tax Department. The company had detailed factual responses to the tax department, based on which the department has now issued the draft assessment order, citing the changes to be made to the total income of the company.
The draft assessment order proposes tax adjustments to the transfer pricing assessment order dated January 22, 2026 and the corporate tax. The earlier notice included a corporate tax adjustment amounting to Rs 27,63,98,380, the current draft assessment order reduced it to only Rs 52,61,308, providing significant relief to the company.
Key Details of the Order
| Particulars | Details |
| Issuing Authority | Faceless Assessment Unit, Income Tax Department |
| Order Date | March 3, 2026 |
| Date of Receipt | March 9, 2026, at 04:15 PM (IST) |
| Type of Order | Draft Assessment Order |
| Section | Section 144C(1) of the Income-tax Act, 1961 |
Proposed Adjustments
| Type of Adjustment | Previous Amount | Revised Proposed Amount |
| Transfer Pricing Adjustment | – | Rs 61,73,41,693 |
| Corporate Tax Adjustment | Rs 27,63,98,380 | Rs 52,61,308 |
Company’s Next Steps
The company said that it will file an intimation with the faceless assessment unit, informing them about the forum where the company will challenge the tax adjustments proposed in the draft assessment order within the specified timelines. For this, the company will seek legal advice.
The company is confident that it will receive favourable relief from the appropriate forum where the tax adjustments will be challenged.
Financial Impact
As per Carraro India, the draft assessment order does not have any immediate impact on its financial, operations or other activities.
Company’s Disclosure Compliance
The above disclosure was made by Carraro India to both stock exchanges under Regulation 30 read with Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).