Kaveri Seed Company Limited has received a Notice of Hearing from the Income Tax Appellate Tribunal (ITAT) concerning a tax demand of ₹56,21,17,500 for Assessment Year 2022-23. This demand arose from the disallowance of exemption claimed on agricultural income. Although the Commissioner of Income Tax (Appeals) had previously allowed the company’s claim and deleted the demand, the Income Tax Department has now filed an appeal. The hearing is scheduled for October 15, 2026.
ITAT Hearing Scheduled for Major Tax Appeal
Kaveri Seed Company Limited announced today that it has received a Notice of Hearing from the Income Tax Appellate Tribunal (ITAT), Hyderabad Benches. This follows an appeal filed by the Income Tax Department against an order issued by the Commissioner of Income Tax (Appeals) for the Assessment Year 2022-23.
Background of the Tax Demand
The core of this appeal pertains to a tax demand of ₹56,21,17,500 that was initially raised by the Income Tax Authorities. This demand was primarily based on the disallowance of an exemption the company claimed on its agricultural income. Subsequently, the Hon’ble Commissioner of Income Tax (Appeals) had ruled in favor of Kaveri Seed Company, allowing the claim and deleting the aforementioned demand through an order dated April 7, 2026.
Current Status and Next Steps
The Income Tax Department has now appealed this decision to the ITAT. The matter is scheduled for a hearing on October 15, 2026. Kaveri Seed Company is currently evaluating the notice and states it will take all necessary steps to defend its position before the Tribunal. This disclosure is in continuation of the company’s earlier intimations regarding the receipt of the demand notice and the appellate order.
Financial Impact Assessment
While the tax demand involved amounts to ₹56,21,17,500, the company believes it has a strong case on merits. Kaveri Seed Company does not expect any material adverse impact at this stage, despite the ongoing appeal. The company is analyzing the notice and preparing its defense strategy.
Source: BSE
