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KNR Constructions Faces ₹72 Cr Tax Demand
15 Dec
Summary
- KNR Constructions received a ₹72.03 crore income tax demand notice.
- The demand relates to alleged short-term capital gains from 2006-07.
- The company plans to appeal the order at the Telangana High Court.
Infrastructure firm KNR Constructions Ltd disclosed on December 15, 2025, that it received an income tax demand order totaling ₹72.03 crore, which includes ₹42.33 crore in interest. This significant demand pertains to the assessment year 2007-08 and arises from alleged short-term capital gains associated with agricultural land sales that occurred in the financial year 2006-07.
The order was issued by the Assistant Commissioner of Income Tax in Hyderabad and was received by the company on December 13, 2025. The tax demand is a consequential order following a decision by the Income Tax Appellate Tribunal. KNR Constructions has indicated that this matter does not pose an immediate financial or operational risk.
Based on legal advice and the merits of the case, KNR Constructions announced its intention to file an appeal against the Income Tax Appellate Tribunal's order with the High Court of Telangana. The company assured stakeholders that any material developments concerning this tax demand will be promptly disclosed to the relevant stock exchanges as per regulatory requirements.
