Kesoram Industries Limited has officially disclosed the receipt of a significant Income Tax Assessment Order demanding a payment of ₹70.54 Crores. The communication, received on March 31, 2026, pertains to the Assessment Year 2024-25 (Financial Year 2023-24).
The demand was issued by the Assessment Unit of the Income Tax Department under section 143(3) read with section 144B of the Income Tax Act, 1961. According to the company’s regulatory filing, the tax authorities have made certain additions and disallowed specific deductions that were originally claimed in the company’s tax returns for the specified period.
In a swift response to the disclosure, Kesoram Industries stated that the additions and disallowances made by the authorities are “prima facie erroneous”. The company maintains that it possesses strong factual and legal grounds to have the entire demand nullified.
Importantly for investors, Kesoram has clarified that it does not expect any impact on its financial operations resulting from this demand. There were no penalties or restrictions imposed alongside the communication.
Kesoram is currently in the process of initiating a multi-pronged legal defense to contest the order. The company’s planned actions include:
- Filing an appeal before the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre (NFAC).
- Potentially filing a Writ Petition before the Hon’ble High Court as deemed fit.
- Submitting a rectification application to address the disputed additions within the prescribed timelines.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
