Kalpataru Subsidiary to Challenge Tax Appeal Order After ₹9.20 Crore Demand Upheld

Kalpataru Ltd has disclosed through a filing dated July 4, 2026, that its wholly owned subsidiary, Abacus Real Estate Pvt Ltd, has received an order from the Commissioner of Income Tax (Appeals), Mumbai, in connection with a tax dispute for the Assessment Year 2013-14.  

The appellate authority has dismissed the subsidiary's appeal and upheld the additions to income made by the Income Tax Officer during the assessment proceedings.  

Tax Demand Reduced After Earlier Payment 

The assessment had resulted in a total tax demand of ₹15.44 crore, including interest. The company said ₹6.24 crore has already been paid by the subsidiary. Following the appellate order, the balance tax demand, including interest, stands at ₹9.20 crore.  

Kalpataru also noted that details of the litigation had been disclosed in its prospectus dated June 26, 2025.  

Further Appeal Planned 

The company said Abacus Real Estate will challenge the order under the provisions of the Income Tax Act. The matter will be taken to the next appellate forum available under the law. Kalpataru stated that it remains hopeful of a favourable outcome as the legal process continues.  

No Material Financial Impact Expected 

Kalpataru said the order is not expected to have a material financial impact on the company's operations. The dispute is limited to the tax assessment of the subsidiary for the 2013-14 assessment year and relates to additions made by the tax department to its reported income.  

The company has not announced any change to its business or operational plans following the order.  

Long-Running Tax Matter 

The case has been under litigation for several years and was already part of the company's public disclosures before its listing. With the appeal before the Commissioner of Income Tax (Appeals) now dismissed, the dispute will move to the next stage of the legal process.  

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Kalpataru Ltd Share Price Performance  

As of July 3, 2026, 3:30 pm, Kalpataru Limited share price closed at ₹308.50, up 0.97% from the previous closing price. 

Conclusion 

Following the adverse appellate order, Kalpataru's subsidiary will pursue the next legal remedy under the Income Tax Act. The company has stated that its operations are not expected to be materially affected. 

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