Kaveri Seed Company is set for an ITAT hearing on November 2, 2026, regarding a ₹69.59 crore tax demand for AY 2023-24. The company is appealing against the Income Tax Department's demand on agricultural income exemptions, having previously won a favorable order.
Kaveri Seed Company faces ITAT hearing on ₹69.59 crore tax demand
Kaveri Seed Company Ltd's tax dispute for Assessment Year 2023-24 involves a demand of ₹69.59 crore. The Income Tax Appellate Tribunal (ITAT) has scheduled a hearing for November 2, 2026. ## What just happened Kaveri Seed Company Ltd has received a Notice of Hearing from the Income Tax Appellate Tribunal (ITAT), Hyderabad Benches. The hearing is scheduled for November 2, 2026. This follows an appeal filed by the Income Tax Department against a prior order that favored the company. The core of the dispute is a tax demand of ₹69.59 crore (₹6,958.75 lakh) for Assessment Year 2023-24. This demand was raised by the Income Tax Department after disallowing exemptions claimed by Kaveri Seed on its agricultural income. ## Why this matters This ITAT hearing is critical as it concerns a significant contingent liability for Kaveri Seed. The outcome will determine whether the ₹69.59 crore tax demand, initially deleted by the Commissioner of Income Tax (Appeals), will be reinstated. While the amount is substantial, the company's previous success in the appeal process provides some reassurance. ## The backstory Previously, on April 8, 2026, the Commissioner of Income Tax (Appeals) had ruled in favor of Kaveri Seed Company, allowing its claim for exemptions and deleting the tax demand. The Income Tax Department's appeal to the ITAT marks its challenge to this favorable ruling. ## What changes now The company is currently reviewing the notice and its implications. Management has expressed confidence in the company's legal position and believes it has a strong case on merits. They anticipate no material adverse impact at this stage, but the ITAT's decision will significantly alter the financial outlook regarding this specific tax demand. ## Risks to watch The primary risk is an unfavorable ruling from the ITAT, which could lead to the reinstatement of the ₹69.59 crore tax demand. Investors should also consider the potential for further legal proceedings if the ITAT's decision is contested by either party. ## Peer comparison Tax disputes are not uncommon in the agricultural sector, where the classification and taxation of agricultural income can be complex. Many agribusiness companies face scrutiny over exemptions. However, specific comparable data for similar ITAT appeals involving this exact demand amount and timeline are not readily available. ## Context metrics (time-bound) The tax demand pertains to Assessment Year 2023-24. The favorable order from the Commissioner of Income Tax (Appeals) was issued on April 8, 2026. The ITAT hearing is scheduled for November 2, 2026. ## What to track next Investors should closely monitor the proceedings and the final verdict from the ITAT hearing on November 2, 2026. Any updates on this matter will be crucial for assessing the company's financial liabilities.
