The company stated that the tax demand is ad-hoc and based on estimations. KEC Spur Infrastructure is preparing appeals with the Commissioner of Income Tax (Appeals) to substantiate the legitimacy of the expenses. The company expects the issue to be resolved through the appeal process.
KEC International noted that it does not foresee any material financial impact from the demand, and the subsidiary believes the matter is strong on its merits. The company is taking appropriate legal steps to contest the order.
Also Read: KEC International wins fresh orders worth ₹1,002 crore
Yesterday, KEC International said it had won new orders, totalling ₹2,518 crore across its businesses. In the civil segment, the company secured its largest-ever commercial real estate order from a leading developer in western India. In transportation, KEC International won a joint venture order under India’s Train Collision Avoidance System (TCAS) programme, known as Kavach.
The transmission & distribution (T&D) business secured multiple orders, including 400/132/66 kV transmission lines in Africa, additional transmission lines and substations in international markets, supply of towers in Europe and the Americas, and supply of hardware and poles in the Americas.
In the cables & conductors segment, the company received orders for supplying various types of cables and conductors in India and overseas markets.
Also Read: Three railway stocks that should be on your radar for Kavach updates
Shares of KEC International Ltd ended at ₹578.45, up by ₹10.50, or 1.85%, on the BSE.
(Edited by : Jomy Jos Pullokaran)
