KEC International’s wholly owned subsidiary, KEC Spur Infrastructure Private Limited, has received a tax demand notice of ₹46.19 crore for the 2022-23 financial year. The tax department’s assessment cites ad-hoc disallowances of business expenses and unverified creditors. The company maintains that the demand is based on estimations and is preparing to file an appeal, confident that the matter is strong on merits with no material financial impact expected.
Understanding the Tax Demand
KEC Spur Infrastructure Private Limited, a wholly owned subsidiary of KEC International, was issued an order by the tax authorities on March 24, 2026. The assessment for the 2022-23 financial year resulted in a total tax demand of ₹46.19 crore. The primary reasons cited for this demand include the disallowance of normal business expenditures and concerns regarding unverified creditors.
Company Stance and Future Outlook
The company has reviewed the order and considers the raised demand to be ad-hoc and based on generalized estimations rather than concrete findings. Management is currently preparing to contest the order before the Commissioner of Income tax (Appeals). The company remains confident in its position, asserting that it can adequately substantiate the genuineness of its business expenses. Given the strength of its case, KEC International does not anticipate any material financial impact resulting from this development.
Source: BSE
