KNR Constructions receives income tax demand order of Rs 8.89 crore for FY 2019-20
KNR Constructions Limited received a consequential income tax order demanding Rs 8,89,16,625 for assessment year 2019-20 from Deputy Commissioner of Income Tax, Hyderabad. This follows successful appeal before CIT(A) which reduced the original demand from Rs 100,43,93,437. The company states no impact on financial or operational activities and will update exchanges on material developments.
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KNR Constructions Limited has informed stock exchanges about receiving a consequential income tax order from the Deputy Commissioner of Income Tax, Central Circle-2(2), Hyderabad. The order, dated February 10, 2026, and received on February 18, 2026, pertains to assessment year 2019-20 and follows the implementation of a Commissioner of Income Tax (Appeals) directive.
Income Tax Order Details
The company disclosed comprehensive details of the income tax proceedings under Regulation 30 of SEBI (LODR) Regulations, 2015:
| Parameter | Details |
|---|---|
| Issuing Authority | Deputy Commissioner of Income Tax, Central Circle-2(2), Hyderabad |
| Order Date | February 10, 2026 |
| Receipt Date | February 18, 2026 at 05:22 PM |
| Assessment Year | 2019-20 |
| Current Demand | Rs 8,89,16,625 |
Background of Tax Proceedings
The current order stems from earlier tax assessment proceedings where the Assessing Officer had initially made additions towards 80-IA deduction and exceptional items. The original demand raised by the Assessing Officer was significantly higher at Rs 100,43,93,437 for assessment year 2019-20.
KNR Constructions had filed an appeal before CIT(A)-12, Hyderabad, challenging these additions. The appeal was allowed in favor of the company, resulting in a substantial reduction in the tax demand.
Current Status and Impact
Following the CIT(A) order, the Assessing Officer has now issued a consequential order implementing the appellate authority's decision. This has resulted in the revised demand of Rs 8,89,16,625, representing a significant decrease from the original assessment.
| Financial Impact | Assessment |
|---|---|
| Original Demand | Rs 100,43,93,437 |
| Revised Demand | Rs 8,89,16,625 |
| Reduction Amount | Rs 91,54,76,812 |
| Operational Impact | No impact stated |
The company has explicitly stated that this order will have no impact on its financial, operational, and other activities. KNR Constructions has committed to inform stock exchanges of any material developments in this matter as per Regulation 30(7) of the SEBI Listing Regulations.
Regulatory Compliance
The disclosure was made through proper channels to both BSE Limited (Scrip Code: 532942) and National Stock Exchange of India Limited (Scrip Code: KNRCON). The intimation was signed by Company Secretary Haritha Varanasi and filed in compliance with regulatory requirements for material event disclosures.
Historical Stock Returns for KNR Constructions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.54% | -2.35% | -0.52% | -27.98% | -39.12% | -34.25% |
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