KNR Constructions Limited has received a penalty order amounting to Rs 18.22 crore under Section 271(1)(c) of the Income Tax Act, 1961 for the Assessment Year 2007–08, the company disclosed to the stock exchanges on March 31, 2025.
The penalty was imposed by the Joint Commissioner of Income Tax, Central Circle, Central Range-2, Hyderabad, citing furnishing of inaccurate particulars of income as the reason for the levy.
Company’s Response:
In its official statement, KNR Constructions stated:
“Based on the Company’s assessment, the aforementioned tax/penalty demand is not maintainable in law. Accordingly, the Company shall take appropriate steps including filing of an appeal before the appropriate forum within the stipulated timeline.”
The company also confirmed that it would update the exchanges on the outcome of the proceedings as they progress.
Despite the penalty, KNR Constructions clarified that the order is not expected to have any material financial or operational impact on the company at this stage.
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