Kalpataru International cuts tax demand by over 34%

Kalpataru Projects International Limited (KPIL) has reported a rectification order from the Hon’ble deputy commissioner of income tax, Central Circle-3(3), Mumbai (DCIT), on September 10, 2025. This order significantly reduced the tax demand for Assessment Year (AY) 2020-21 from INR 38.51 Crores to INR 25.38 Crores. The company stated that the demand is expected to be reduced even further due to a pending order from Hon’ble CIT(A) against the original demand.

Previously, on August 1, 2025, KPIL disclosed that the Hon’ble commissioner of income tax (appeals) – 51, Mumbai (“CIT(A)”) had passed orders for AY 2018-19 to AY 2020-21, providing major relief by reducing disallowances. Similarly, on July 31, 2025, the CIT(A) had ordered a reduction in tax demand of INR 1.57 Crore and a refund eligibility of INR 0.19 Crore for AY 2013-14 to AY 2015-16 and AY 2017-18.

Further, on April 3, 2025, a rectification order from the DCIT reduced the tax demand for AY 2016-17 from INR 95.83 Crores to Nil. The company intends to appeal matters not accepted by the CIT(A), believing it has a strong case and that these orders will not have significant financial implications.