Income Tax Department Slaps Rs 4.68 Crore Penalty on Larsen & Toubro

The Income Tax Department has imposed a penalty of over Rs 4.68 crore on Larsen & Toubro Ltd regarding tax proceedings of its subsidiary, L&T Hydrocarbon Engineering Limited. L&T plans to file an appeal against this order, anticipating a favorable outcome.

The Income Tax Department has imposed a significant penalty of over Rs 4.68 crore on Larsen & Toubro Ltd, as disclosed in a recent regulatory filing. This penalty relates to the tax affairs of the now-merged L&T Hydrocarbon Engineering Limited, a wholly-owned subsidiary that was integrated with the company on April 1, 2021.

According to the filing, the penalty amounting to Rs 4,68,91,352 stems from income tax assessments and subsequent adjustments for the Assessment Year 2020-21. L&T has stated that it plans to appeal against the penalty, expressing confidence in a favorable outcome at a higher tribunal.

Larsen & Toubro, a $27 billion Indian multinational conglomerate, is involved in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and various services across multiple regions.