According to reports from CNBC TV18, KEC International Ltd announced on Thursday (April 9) that its wholly owned subsidiary, KEC Spur Infrastructure Private Ltd, has received a tax demand of ₹46.19 crore from the Income Tax Department for FY23. The order, dated March 24, 2026, arises from ad-hoc additions and disallowances of business expenses and alleged unverified creditors.
As reported by CNBC TV18, KEC International stated that the tax demand is ad-hoc and based on estimations. The company confirmed that KEC Spur Infrastructure is preparing appeals with the Commissioner of Income Tax (Appeals) to substantiate the legitimacy of the expenses. KEC International expects the issue to be resolved through the appeal process and is taking appropriate legal steps to contest the order.
According to the company's statement reported by CNBC TV18, KEC International does not foresee any material financial impact from the demand, and the subsidiary believes the matter is strong on its merits. The company emphasized that it is taking appropriate legal steps to contest the order and expects resolution through the established appeal process.
As reported by CNBC TV18, KEC International announced winning new orders totalling ₹2,518 crore across its businesses on the previous day. The company secured its largest-ever commercial real estate order from a leading developer in western India in the civil segment. In transportation, KEC International won a joint venture order under India's Train Collision Avoidance System (TCAS) programme, known as Kavach.
According to CNBC TV18, shares of KEC International Ltd ended at ₹578.45, up by ₹10.50, or 1.85%, on the BSE on Thursday. The positive market response occurred despite the tax notice announcement, indicating investor confidence in the company's ability to resolve the matter through legal channels.
