KNR Constructions Ltd has received a tax demand order worth nearly ₹1 billion from the Income Tax Department, Hyderabad. The order relates to the assessment year 2019–20 and follows earlier appeals that reduced a larger proposed addition. The company is expected to explore legal remedies, raising investor concerns.
Infrastructure developer KNR Constructions Ltd (KNRL.NS) announced that it has been served a tax demand order of approximately ₹1 billion (₹88.9 crore finalized) by the Deputy Commissioner of Income Tax, Central Circle-2(2), Hyderabad. The order pertains to the assessment year 2019–20 and comes after a consequential ruling by the Commissioner of Income Tax (Appeals).
The company had earlier contested a proposed addition exceeding ₹100 crore, which was successfully reduced. However, the latest demand still places compliance and financial pressure on KNR Constructions, potentially impacting near-term liquidity and investor sentiment. Market analysts expect short-term volatility in KNRL’s stock as the company evaluates further legal options.
Key Highlights
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Tax Demand: Nearly ₹1 billion (₹88.9 crore finalized).
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Authority: Deputy Commissioner of Income Tax, Hyderabad.
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Assessment Year: 2019–20.
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Background: Earlier proposed addition of ₹100+ crore reduced after appeal.
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Investor Impact: Short-term volatility expected in KNRL shares.
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Compliance Outlook: Company likely to pursue additional legal remedies.
Sources: NSE India filing, CNBC-TV18, Moneycontrol