Kirloskar Oil Engines Limited has been issued a show cause notice by the Joint Commissioner Corporate Circle, Lucknow, regarding the financial year 2022-23. The notice concerns an Input Tax Credit (ITC) mismatch and other related points, amounting to a total tax demand of ₹5,90,02,030 along with a penalty of ₹59,00,203. The company maintains that this will not have a material impact on its operations and is preparing a formal response.
Details of the Tax Demand
On May 19, 2026, Kirloskar Oil Engines Limited received a formal communication from the tax authorities in Lucknow, Uttar Pradesh. The notice highlights discrepancies related to ITC Mismatch and other fiscal points pertaining to the 2022-23 financial year. The authorities have raised a primary tax demand of ₹5,90,02,030 and have further levied a penalty of ₹59,00,203.
Company Response and Impact Assessment
In response to the notice, the company has conducted an internal review of the claims. Management has stated that they do not foresee any material impact on the company’s financial health, day-to-day operations, or ongoing business activities as a result of this demand. The legal and finance teams are currently in the process of finalizing a comprehensive reply to be submitted to the authorities within the prescribed timelines to resolve the matter.
Source: BSE
