Colgate-Palmolive (India) has disclosed that it has received an income tax demand amounting to ₹267.64 crore for FY22, mainly due to transfer pricing adjustments and the disallowance of certain expenses, according to a regulatory filing.
The assessment order was issued under Section 143(3) read with Section 144C(13) of the Income Tax Act, along with a demand notice under Section 156. The company received the communication from the income tax assessment unit on December 24, 2025, and informed the stock exchanges on Thursday, as December 25 was a public holiday. The demand pertains to the assessment year 2022–23.
Colgate-Palmolive India clarified that the tax order will not affect its financial position, operations, or business activities. The company said it plans to challenge the order by filing an appeal before the Income Tax Appellate Tribunal (ITAT).
The filing also noted that the assessment order does not mention any penalties, sanctions, or instances of non-compliance. During the period under review, the company reported revenue from operations of ₹1,50,724 lakh and a profit after tax of ₹32,062 lakh.
Meanwhile, Colgate-Palmolive India’s share price closed flat on December 26. The stock has declined 3.64 percent over the past month and is down more than 22 percent so far in 2025.
