Bombay Dyeing and Manufacturing Faces Rs 574 Crore Tax Adjustment, Plans Legal Challenge

The Bombay Dyeing and Manufacturing Company Limited, a Non-Resident of India (NRI), has informed the stock exchange (NSE and BSE) that it has received an Assessment Order passed by the Assessment Unit of the Income Tax Department under the Income Tax Act, 1961.

According to the disclosure, the order was received by the company on Monday (May 04, 2026), through email, for the assessment year 2023-24. The order has made additions to the company’s income on grounds of transfer pricing adjustments, disallowance of deductions claimed with respect to real estate income offered in the earlier years, and certain other expenses. This resulted in the total taxable income of Rs 574.35 crore.

This increased income was set off against available tax losses. Thereafter, the tax authorities issued a notice to the company, raising the income tax demand amounting to Rs 2.26 lakh. Separately, initiated penalty proceedings against the company. The company has clarified that it believes that the order is not valid. Consequently, planning to take relevant actions against the order and, additionally, looking for all possible legal remedies available under the Income Tax Act.

The aforementioned disclosure has been made by Bombay Dyeing and Manufacturing Company Limited through an intimation dated May 04, 2026, addressed to the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE).