Kaveri Seed Company Limited Wins Appeal Against Income Tax Demand
Kaveri Seed Company Limited announced on March 31, 2026, that it has won an appeal against an Income Tax demand for the Assessment Year 2020-21. The decision, issued by the Office of the Commissioner of Income Tax (Appeals) - 11, Hyderabad, sets aside a previously raised demand.The Income Tax Authorities had initially assessed a demand of Rs. 73,25,39,490, primarily due to the disallowance of an exemption claimed on agricultural income. The Appellate Authority has now allowed the company’s claim, classifying the income as agricultural income and consequently eliminating the demand.
This development follows a prior disclosure made by Kaveri Seed Company Limited on October 1, 2022, regarding the initial demand notice and the company's intention to pursue legal remedies. The company stated that there is no adverse financial impact as a result of this ruling.
Below is a summary of the key details regarding the appeal:
| Particulars | Details |
|---|---|
| Name of the listed Company | Kaveri Seed Company Limited |
| Name of the authority | Office of the Commissioner of Income Tax (Appeals) - 11, Hyderabad |
| Nature and details of the action(s) taken, initiated or order(s) passed | Order passed allowing the Company's appeal against the Income Tax demand for the Assessment Year 2020-2'l' |
| Date of receipt of direction or order | Order dated March 30, 2026. |
| Details of the violation(s)/ contravention(s) committed or alleged to be committed | The Income Tax Authorities had previously disallowed the exemption claimed by the Company, mainly on agricultural income and raised a demand u/s.1a3(3) of the I.T Act, 1961 dated 30.09.2022. |
| Impact on financial, operation or other activities | The demand of Rs. 73,25,39,490/- raised earlier stands set aside. There is no adverse financial impact on the Company |
Source:
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.