In a significant development, the Income Tax Department has levied a penalty of Rs 4,68,91,352 on Larsen & Toubro Ltd (L&T), as revealed in a recent regulatory filing. This penalty stems from tax proceedings related to the now-merged L&T Hydrocarbon Engineering Limited, a wholly-owned subsidiary of L&T. The merger took effect on April 1, 2021.
The penalty pertains to the income tax assessment for the Assessment Year 2020-21. According to the filing, "Pursuant to the income tax assessment of the company and consequent adjustment in the returned income for the Assessment Year 2020-21, a penalty is levied on such adjustment to the returned income."
L&T, a $27 billion Indian multinational conglomerate known for its engineering, procurement, and construction (EPC) projects, as well as hi-tech manufacturing and services, operates across various geographies. The company has announced its intention to challenge the penalty. "L&T will file an appeal against this order as it does not agree with this levy and expects a favourable outcome at the higher forum," stated the filing.
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