Kaveri Seed Company Limited announced that its appeal against the Income Tax demand for the Assessment Year 2020-21 has been successfully decided in its favour by the Appellate Authority. The original demand, amounting to Rs. 73,25,39,490/-, was primarily based on the disallowance of exemption claimed on agricultural income. The order, dated March 30, 2026, upholds the company’s claim, setting aside the demand and resulting in no adverse financial impact.
Favorable Ruling on Tax Demand
Kaveri Seed Company Limited has received a favorable order regarding its appeal against the Income Tax demand pertaining to the Assessment Year (AY) 2020-21. The decision was issued by the appellate authority on March 30, 2026.
Details of the Original Demand
The Income Tax Authorities had previously issued a demand totaling Rs. 73,25,39,490/-. This demand stemmed from the disallowance of the exemption the Company had claimed on its agricultural income. This initial assessment notice was dated September 30, 2022.
Outcome of the Appellate Order
The Hon’ble Appellate Authority has now reviewed the case and allowed the Company’s claim. The authority has affirmed that the income in question should be treated as agricultural income. Consequently, the entire demand of Rs. 73,25,39,490/- raised earlier has been set aside pursuant to this appellate order.
Financial Impact and Disclosure
The Company confirms that there is no adverse financial impact resulting from this outcome, as the significant demand has been nullified. This development is a continuation of prior communication made by the Company on October 1, 2022, regarding the initial demand notice and the intent to pursue legal remedies.
Source: BSE
