Big Win: Rs. 65.56 Cr Income Tax Demand Against JK Paper Struck Down

JK Paper Limited has announced a big relief in an ongoing tax matter after receiving a favorable order from the Income Tax Department. The company informed the BSE and NSE about this development on June 26, 2025 as a part of the company’s disclosure obligations under Regulation 30 of the SEBI Regulations, 2015.

The company referred to an earlier communication dated November 21, 2023 in its official filing and submitted the new update in a well format called as ‘Form A’. The declaration was made by Mr. Pradeep Joshi, Company Secretary and Compliance Officer of JK Paper, he confirmed the information provided by the company is true and complete to the best of his knowledge.

JK Paper received a communication from the Commissioner of Income Tax (Appeals). This communication was related to the company’s earlier request of cancelling the tax demand. The Commissioner provided a final decision on June 21, 2025 and this gave a big relief to the company as the decision was in its favor.

The company had to pay a total demand of Rs. 6,556.42 lakh, which included an interest amount of Rs. 2,239.35 lakh as per the earlier tax assessment. But in this new order, the entire tax demand has been cancelled. This means JK Paper is no longer required to pay any amount in this case, as the Commissioner has ruled fully in its favor.

This tax matter was related to the AY 2020-21. The company has cleared that there will be no financial impact on its operations or balance sheet because of this development, as the demand has been completely withdrawn.

Also, the order did not point out any errors or non-compliance on the part of the company. So, no penalties, restrictions or sanctions have been imposed. JK Paper has confirmed that there will be no need of further action from their side related to this matter.