KNR Constructions Limited has informed stock exchanges about receiving a significant income tax demand order of ₹72.03 crores for Assessment Year 2007-08. The company filed this disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015.

Income Tax Demand Details

The Assistant Commissioner of Income Tax, Central Circle-2(2), Hyderabad issued the consequential order. The demand breakdown is as follows:

Nature of Tax Dispute

The income tax demand relates to alleged short-term capital gains on the sale of agricultural land during the financial year 2006-07. This represents a consequential order following an Income Tax Appellate Tribunal (ITAT) order for Assessment Year 2007-08.

Company's Response Strategy

KNR Constructions has outlined its approach to contest the income tax demand. Based on the merits of the matter and advice from legal counsel, the company plans to file an appeal before the Honourable High Court of Telangana against the ITAT order.

Expected Financial Impact

The company has assessed that it does not expect any material financial and operational impact at this point in time. KNR Constructions has committed to inform stock exchanges of any material developments on this matter in accordance with Regulation 30(7) of the SEBI Listing Regulations.

Regulatory Compliance

The company acknowledged a delay in submitting the regulatory filing within the required timeframe and sought condonation for the same. Company Secretary Haritha Varanasi signed the disclosure document, ensuring compliance with stock exchange notification requirements.

KNR Constructions Limited , a prominent player in the Indian infrastructure sector, has announced a significant new project win, bolstering its order book.

Contract Details

The company has received a Letter of Acceptance from Musi Riverfront Development Corporation Limited for a high-profile infrastructure project in Hyderabad. The contract involves the construction of an iconic bridge across Mir Alam Tank, connecting Bengaluru National Highway at Shastripuram to Chintalmet.

Project Significance

This project is part of the ongoing development of Hyderabad's urban infrastructure. The iconic bridge is expected to enhance connectivity between key areas of the city.

Company Update

In line with regulatory requirements and the company's insider trading prevention policy, KNR Constructions has also announced a brief closure of its trading window:

This temporary closure ensures fair trading practices and prevents potential insider trading during this significant announcement period.

Market Implications

This contract win demonstrates KNR Constructions' continued ability to secure major infrastructure projects. The substantial contract value of over Rs. 319 crore may contribute to the company's order book.