KNR Constructions Limited has informed the Exchange about Action(s) initiated or orders passed
KNRCON · price
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KNR Constructions has informed exchanges that it received orders from the Commissioner of Income Tax (Appeals)-12, Hyderabad, covering four assessment years (2017-18 to 2020-21). The CIT(A) allowed the company's appeals and ruled in its favour, setting aside the earlier disallowances made by the Assessing Officer. The original disallowances related to deductions claimed under Section 80-IA of the Income Tax Act and an arbitration claim linked to one of the company's projects, where the tax department had raised demands. The company is now waiting for the Assessing Officer to issue consequential orders to give effect to the CIT(A) ruling. The exact financial impact cannot be quantified yet and will be updated once the consequential orders are received.
This is a positive development for shareholders, as the tax department's demands across four assessment years have been overturned in the company's favour at the first appellate level. Once consequential orders are issued and quantified, the relief could ease tax-related uncertainties and potentially improve cash flows, though the final financial impact awaits further clarity.