Big Win! JK Lakshmi Cement Gets Income Tax Relief

JK Lakshmi Cement Limited (JKLC) has informed the stock exchanges, BSE and NSE, about a positive update regarding an old tax case. This announcement aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and follows an earlier notice from the company on January 23, 2024.

On June 22, 2025, JKLC received an official letter from the Deputy Commissioner of Income Tax. This letter included an order issued under Sections 250 and 143(3) of the Income Tax Act 1961 for the financial year 2020-21.

The Income Tax Officer added Rs. 6,033.28 lakhs to the company’s income under Section 143(3) of the Act on January 22, 2024. This resulted in a tax demand of Rs. 2,538.96 lakhs, which included an interest of Rs. 799.65 lakhs. JKLC filed an appeal with the Commissioner of Income Tax (Appeals) against this addition.

The ruling was in favor of JKLC by the Commissioner of Income Tax (Appeals). After this, on June 20, 2025 the Income Tax Officer passed a new order under the Sec 250 and 143(3) to give effect to the appellate order. The addition of Rs. 6,033.28 lakhs were deleted and also the entire demand of Rs. 2,538.96 lakhs was also removed including the interest.

This order is specifically applicable to the FY 2020-21. JKLC has confirmed that there will be no financial impact because of the cancellation of tax demand. The company also stated that no non-compliance or irregularities were found in the communication. So, no penalty, restriction or sanction has been imposed by the authorities. Therefore, no action is required from JKLC.

The company’s disclosure also included a declaration by the Company Secretary, Amit Chaurasia, who confirmed all information provided in the attached Form A is true, correct and complete to the best of his knowledge and belief. The communication has been submitted through the BSE Listing Centre and NEAPS portal of NSE.

This favorable outcome provided a big relief to JK Lakshmi Cement and made its financial position stronger by removing a significant tax liability. The company will continue to stay committed to fairness and full compliance with regulatory guidelines.