KEC Spur Infrastructure Private Limited Receives Tax Demand Order from Income Tax Department

KEC Spur Infrastructure Private Limited, a wholly owned subsidiary of KEC International Ltd, has received an Order from the Income Tax Department, Assessment Unit, raising a tax demand of Rs. 46.19 crores primarily arising out of ad-hoc additions / disallowances of normal business expenditures and alleged unverified creditors for the financial year 2022-23. The Company believes that the impugned tax demand is ad-hoc and based on estimations, and the wholly owned subsidiary should be able to substantiate and justify the genuineness of the expenses. The Company is in the process of filing necessary appeals in relation thereto and does not foresee any material financial impact on account of the Order.