Kalpataru Projects International Limited has secured another significant tax relief as the Income Tax Appellate Tribunal (ITAT) Mumbai issued orders reducing tax demands to NIL for Assessment Years 2013-14 to 2015-16 and AY 2017-18. This development adds to the company's earlier success in obtaining relief for AY 2019-20, where a ₹81.53 crore tax demand was cancelled.

Latest ITAT Relief

The company received the latest ITAT order on December 24, 2025, which granted relief in respect of disallowances upheld by the Commissioner of Income Tax (Appeals)-51, Mumbai. The tribunal's decision under section 254 of the Income Tax Act, 1961, has resulted in the complete elimination of tax demands for the specified assessment years.

Previous Tax Relief for AY 2019-20

Earlier, the company had received substantial relief for AY 2019-20 when the Deputy Commissioner of Income Tax, Central Circle-3(3), Mumbai issued an Order Giving Effect (OGE) to the CIT(A) order. This resulted in two significant outcomes:

Comprehensive Tax Resolution Pattern

The latest developments continue Kalpataru Projects' successful track record in tax matters. The company has systematically obtained relief across multiple assessment years:

• AY 2013-14 to AY 2015-16 and AY 2017-18: Tax demands reduced to NIL through latest ITAT order
• AY 2019-20: ₹81.53 crore demand cancelled with ₹7.35 crore refund eligibility
• AY 2020-21: Demand reduced from ₹38.51 crore to ₹25.38 crore through rectification order
• AY 2018-19 to AY 2020-21: Major relief provided through CIT(A) orders

Regulatory Compliance and Timeline

The company has maintained transparent disclosure practices, filing regular updates under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The latest ITAT order was received on December 24, 2025, and promptly disclosed to the stock exchanges.

Strategic Impact

While Kalpataru Projects has achieved favorable outcomes in most tax matters, the company maintains its position to contest any unfavorable decisions before higher appellate authorities where it believes it has strong legal grounds. The elimination of tax demands across multiple assessment years significantly reduces the company's tax-related uncertainties and strengthens its financial position.

The successive tax reliefs, including the complete elimination of demands for AY 2013-14 to 2015-16 and AY 2017-18, along with the earlier ₹81.53 crore relief for AY 2019-20, represent substantial positive developments for Kalpataru Projects International Limited's financial outlook.

Kalpataru Projects International Limited (KPIL) has encountered a setback in its ongoing Goods and Services Tax (GST) dispute, as the Appellate Authority upheld a penalty of INR 3.72 crores against the company. The decision, which KPIL received on September 11, stems from a mismatch in Input Tax Credit (ITC) for the financial year 2017-18.

GST Dispute Details

The controversy centers around a discrepancy between the ITC availed in GSTR-3B and the ITC available in GSTR-2A for FY 2017-18. Initially, the GST Authority had demanded a GST amount of INR 3.72 crores, along with an equivalent penalty of INR 3.72 crores, plus applicable interest.

Company's Response

KPIL maintains a strong stance on its defense, asserting that the order was issued without due consideration of the company's reply and documentary evidence. In response to this unfavorable ruling, the company has announced its intention to file a further appeal to a higher appellate authority within the prescribed timelines.

Financial Impact

Despite the substantial sum involved, KPIL has previously stated that the tax and penalty do not have a significant impact on its operations. This assertion suggests that the company is well-positioned to manage the financial implications of the dispute while pursuing legal remedies.

Broader Tax Challenges

The GST dispute is not the only tax-related challenge KPIL is currently navigating. According to the LODR data, the company has been dealing with income tax reassessments for the assessment years 2013-14 to 2020-21, following a search conducted in August 2023. While KPIL has received favorable outcomes in some instances, including a reduction of a INR 95.83 crore demand to nil for AY 2016-17, the company continues to address various tax matters through appeals and rectification applications.

Looking Ahead

As Kalpataru Projects International Limited prepares to contest the GST penalty at a higher appellate level, the company's ability to manage these regulatory challenges will be closely watched by investors and industry observers. The outcome of this appeal, along with the resolution of other ongoing tax disputes, could have implications for the company's financial statements and operational strategies in the coming quarters.

KPIL's proactive approach in addressing these tax issues, coupled with its assertion of strong grounds for defense, demonstrates the company's commitment to resolving regulatory matters while maintaining its focus on core business operations.