Kalpataru Projects tax demand set aside, eligible for refund

Kalpataru Projects International Limited (KPIL) reported a major development in its tax proceedings for the Assessment Year (AY) 2019-20. On September 19, 2025, the deputy commissioner of income tax (DCIT) issued an order giving effect (OGE) to an earlier order, which resulted in the tax demand of INR 81.53 crores for AY 2019-20 being set aside. Consequently, KPIL is now eligible for a refund of INR 7.35 crores.

This positive outcome follows a series of earlier disclosures regarding various assessment years. For AY 2020-21, a rectification order on September 10, 2025, reduced the tax demand from INR 38.51 crores to INR 25.38 crores. Additionally, orders passed for AY 2018-19 to AY 2020-21 provided major relief, as most additions were deleted, significantly reducing the demand.

Earlier in the year, a rectification order on April 3, 2025, had reduced the demand of INR 95.83 crores for AY 2016-17 to nil. The company also previously disclosed a reassessment demand of INR 141.31 crores for AY 2013-14 to AY 2020-21 (excluding AY 2016-17), against which it planned to file appeals.