KSCLNSEKaveri Seed Company Limited· Food And Food ProcessingHighPositive
Announced Tue, 31 Mar · 13:20 IST

Kaveri Seed Company Limited has informed the Exchange about General Updates regarding the intimation of Disclosure on receipt of Order from the Income Tax Department under Regulation 30 of SEBI (LODR) Regulations, 2015

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AI summary

Kaveri Seed Company has won its appeal against an Income Tax demand of Rs. 73.25 crore related to Assessment Year 2020-21. The demand was originally raised because the tax authorities had disallowed the company's exemption claim on agricultural income. The Commissioner of Income Tax (Appeals) in Hyderabad has now ruled in favour of the company, accepting that the income qualifies as agricultural income and is therefore exempt. The order, dated March 30, 2026, fully sets aside the earlier demand, and the company has confirmed there is no adverse financial impact. This follows the company's earlier disclosure from October 2022, when it first received the demand notice and announced plans to challenge it.

Likely market impact

This is a positive development for shareholders, as the entire Rs. 73.25 crore tax demand has been quashed, removing a significant potential liability. The ruling reinforces the company's position on its agricultural income classification and removes uncertainty around the disputed tax.