CE DESK 
Colgate-Palmolive India faces ₹267.64 crore tax demand for FY22 over transfer pricing; company to challenge order at ITAT with no impact on operations.
Colgate-Palmolive (India) Ltd has received a significant tax demand order of ₹267.64 crore from the Income Tax Department for the financial year 2021-22 (assessment year 2022-23). The order, issued under Sections 143(3), 144C(13), and 144B of the Income Tax Act, primarily arises from adjustments in inter-company transfer pricing and disallowance of certain claimed expenses.
The company disclosed the development in a regulatory filing to stock exchanges on December 26, 2025, after receiving the notice on December 24 evening—delaying submission due to the Christmas holiday. Colgate-Palmolive emphasized that the demand carries no penalties, sanctions, or operational restrictions, assuring stakeholders of zero impact on its financials, business operations, or ongoing activities.
In response, the FMCG giant plans to file an appeal before the Income Tax Appellate Tribunal (ITAT), a common recourse for such transfer pricing disputes among multinationals in India. This comes amid recent profit pressures, with a 17% year-on-year net profit decline reported for the September 2025 quarter due to demand slowdowns and costs. The episode underscores ongoing tax certainty concerns in the sector.
