JK Agri Genetics Limited received an assessment order from the Deputy Commissioner of Income Tax, Circle-5(1) Kolkata, resulting in a total tax liability of Rs 0.78 Crore. The order, dated May 31, 2026, disallows expenses of Rs 1.50 Crore and a weighted deduction of Rs 0.75 Crore. The company has decided not to contest the order, and the liability will be adjusted against available Minimum Alternate Tax (MAT) credits, ensuring no cash outflow.

The order was passed under Section 250/143(3) of the Income Tax Act, 1961, following an appeal filed by the company against a previous assessment. The dispute originated from the Income Tax Return filed for the financial year 2017-2018, where the department initially disallowed expenses of ₹ 9.89 Crore due to the non-receipt of Form 3CL from the Department of Scientific and Industrial Research (DSIR).

Background of the Dispute

The initial assessment order in April 2021 had disallowed a weighted deduction of 150% under Section 35(2AB) of the Income Tax Act on Research and Development expenses of ₹ 6.59 Crore. Subsequently, the DSIR disallowed only Rs 1.50 Crore and filed Form 3CL with the Income Tax Department. Based on this, JK Agri Genetics filed an appeal with the Commissioner of Income Tax (Appeals) on May 8, 2021.

On March 30, 2026, the department issued a notice under Section 250 of the Income Tax Act to file grounds of appeal, which the company submitted on April 6, 2026. The CIT (Appeals) passed an order disallowing Rs 1.50 Crore of labour expenses as per the Form 3CL issued by DSIR.

Financial Implications

The final assessment order disallows Rs 1.50 Crore in labour expenses and the associated weighted deduction of Rs 0.75 Crore. This leads to a total tax demand of Rs 0.78 Crore. The company confirmed that this amount will be fully adjusted against the available MAT credit, mitigating any immediate financial impact on its cash flows.

The company accepted the order and stated that there are no aberrations, non-compliances, penalties, or sanctions imposed pursuant to the communication.

JK Agri Genetics Ltd. has issued a formal notice to its shareholders on 13th May 2026, announcing two concurrent investor-service initiatives: a SEBI-mandated special window for the transfer and dematerialisation of physical securities, and the relaunch of its Second 100 Days Campaign — "Saksham Niveshak" — focused on KYC updations and prevention of unclaimed dividend transfers to the Investor Education and Protection Fund (IEPF). The notice was published in Financial Express (All Editions) in English and Aajkaal (Kolkata) in Bengali on 13th May 2026.

Special Window for Transfer and Dematerialisation of Physical Securities

Pursuant to SEBI Circular No. HO/38/13/11(2)2026-MIRSD-POD/1/3750/2026 dated 30th January 2026, a special window has been opened for the transfer and dematerialisation (demat) of physical securities that were sold or purchased prior to 1st April 2019. The window is available for Transfer Deeds executed prior to 1st April 2019, and also covers transfer requests submitted before that date which were rejected, returned, or left unattended due to deficiencies in documents, process, or otherwise.

The key terms and conditions of this special window are outlined below:

The detailed procedure for transfer of securities and conditions to be fulfilled by the investor or transferee are available in the aforesaid SEBI Circular, accessible at www.jkagri.com .

Second 100 Days Campaign — 'Saksham Niveshak'

JK Agri Genetics has also initiated the Second 100 Days Campaign — "Saksham Niveshak" — running from 1st April 2026 to 9th July 2026. This campaign is designed to assist shareholders who have not claimed dividends, have not updated their KYC details, or have issues related to unclaimed dividends and shares.

Key highlights of the campaign include:

• Shareholders with unclaimed dividends or pending KYC updates may write to the company's Registrar and Share Transfer Agent (RTA) for guidance.
• Shareholders holding shares in demat form are requested to approach their respective Depository Participants to update KYC requirements.
• The campaign aims to prevent the transfer of unpaid or unclaimed dividends to the IEPF.

How Shareholders Can Seek Assistance

Shareholders and investors wishing to avail of either initiative are requested to contact the company's RTA directly:

Shareholders holding shares in physical form are specifically urged to dematerialise their shares and complete KYC formalities — including email address and bank account details — with the company's RTA at the earliest. The notice was signed by Anoop Singh Gusain, Company Secretary & Compliance Officer, on behalf of JK Agri Genetics Ltd.