JK Cement has recently informed exchanges that the company received a rectification order from the Income Tax Department, quashing a demand of Rs. 175.47 Cr.
On January 16, 2024, the Income Tax Department issued an assessment order under Section 143(3) of the Income Tax Act, which initially imposed a demand of Rs. 175.47 crore. However, after filing a rectification application, the company received a favorable rectification order on August 16, 2024, quashing the demand.
The rectification order, passed under Sections 154/143(3) and 144C(3) of the Income Tax Act, addressed erroneous additions related to transfer pricing adjustments and failure to grant MAT credit. JK Cement contested these errors and successfully reduced the demand.
This decision is expected to have minimal impact on the company’s financial, operational, or other activities. The company will continue to challenge certain additions during the assessment process in appeal, seeking to restore additional MAT credit. The rectification order reflects the company’s confidence in favorable outcomes from similar past cases, including those decided by the Supreme Court and Tribunals.
