Krsnaa Diagnostics has been hit with an additional tax demand of Rs 12.10 crore for the 2022-23 assessment year. The tax authority applied a 60% tax rate under Section 115BBE following a rectification order. The company is actively appealing the demand, which increases the total balance payable to Rs 31.73 crore.
Krsnaa Diagnostics Faces Rs 12.10 Crore Tax Demand
Rs 12.10 crore represents the additional tax liability; Rs 31.73 crore is the new total demand payable.
Reader Takeaway: The company is contesting the tax order, but the legal uncertainty creates potential financial pressure for shareholders.
What just happened
Krsnaa Diagnostics received a rectification order dated August 14, 2026, from the Assistant Commissioner of Income Tax, Pune. The order pertains to the 2022-23 assessment year and results in an additional tax demand of Rs 12.10 crore. This follows the application of Section 115BBE of the Income Tax Act, which imposes a higher tax rate of 60% along with a 25% surcharge on specific income additions under Sections 69A and 69C.
Why this matters
The revision brings the total balance payable to Rs 31.73 crore, up from the previously cited Rs 19.63 crore. While the total assessed income of Rs 98.27 crore remains unchanged, the application of higher tax rates creates a new financial liability that the company must now address through its balance sheet.
The backstory
The company had previously received an assessment order dated March 31, 2024, which it had already chosen to challenge. This latest development is a rectification of that specific order, effectively increasing the tax burden on the company for the same assessment period.
What changes now
Krsnaa Diagnostics has confirmed that it intends to pursue legal remedies. The company is in the process of filing an appeal or a rectification application with the appropriate appellate authority to contest the demand. Until this process concludes, the liability remains open.
Risks to watch
Investors should monitor the outcome of the appeal. Tax litigation can be protracted, and any adverse ruling could require the company to make a cash outflow of Rs 12.10 crore, impacting its near-term liquidity and earnings profile.
What to track next
Watch for future exchange filings regarding the status of the appeal and any communication from the Income Tax Appellate Tribunal or relevant judicial bodies concerning this rectification order.