L&T Faces Rs 4.68 Cr Penalty From Income Tax Department

Larsen & Toubro (L&T) has been slapped with a penalty exceeding Rs 4.68 crore by the income tax department. 

The penalty is linked to tax proceedings concerning its subsidiary, L&T Hydrocarbon Engineering. The subsidiary, wholly owned by L&T, was merged with the parent company on 1 April 2021, as disclosed in a regulatory filing by L&T.

According to the filing made on Saturday, the income tax department levied a penalty of Rs 4,68,91,352 in connection with the tax proceedings related to L&T Hydrocarbon Engineering Limited. This penalty arises from adjustments in the returned income for the Assessment Year 2020-21.

L&T stated that the penalty resulted from the income tax assessment of the company and subsequent adjustments in the returned income.

Despite the penalty, L&T has expressed its disagreement with the levy and announced its intention to file an appeal against the order. The conglomerate remains optimistic about a favorable outcome at a higher forum. 

Larsen & Toubro Ltd, with a valuation of USD 27 billion, is a prominent player in the engineering, procurement, and construction (EPC) sector, along with hi-tech manufacturing and services. Operating across various geographies, L&T's diverse portfolio includes a wide range of projects and services spanning multiple industries.