JK Agri Genetics: Income Tax Order disallows ₹1.5 Cr R&D, ₹0.52 Cr demand
JK Agri Genetics Ltd received an order from the Income Tax Authority under Section 250 of the Income Tax Act, 1961, dated April 17, 2026. This order pertains to the Financial Year 2017-18, where the company had initially faced a disallowance of ₹9.89 crore (weighted deduction on R&D expenses) with a tax impact of ₹3.42 crore due to non-receipt of Form 3CL. Following an appeal, the Department of Scientific and Industrial Research (DSIR) later disallowed only ₹1.50 crore related to outsourced labour expenses, issuing Form 3CL accordingly. The Commissioner of Income Tax (Appeals) has now passed an order confirming the disallowance of ₹1.50 crore, resulting in a demand of ₹0.52 crore (plus interest). The company states this demand will be adjusted against available MAT credit, ensuring no cash outflow. JK Agri Genetics plans to file an appeal against this order before the Income Tax Appellate Tribunal (ITAT) within 60 days.
Key Highlights
- Income Tax Appeal order received for FY2017-18 disallowing R&D expenses.
- Disallowance of ₹1.50 crore for R&D labour expenses confirmed by CIT (Appeals).
- Resulting demand of ₹0.52 crore to be adjusted against available MAT credit.
- No immediate cash outflow expected from the tax demand.
- Company intends to file an appeal with the ITAT against the order.
Price Impact
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