The Income Tax Department has imposed a penalty exceeding Rs 4.68 crore on Larsen & Toubro Ltd (L&T), according to a regulatory filing. The penalty, amounting to Rs 4,68,91,352, relates to the tax proceedings of the former L&T Hydrocarbon Engineering Limited, a wholly-owned subsidiary that merged with L&T on April 1, 2021.

The penalty was levied following the income tax assessment of the company and adjustments made to the returned income for the Assessment Year 2020-21. "A penalty is levied on such adjustment to the returned income," L&T stated in the filing on Saturday.

Despite the penalty, L&T announced its intention to file an appeal against the order, expressing confidence in achieving a favorable outcome at a higher forum. "The company does not agree with this levy," it asserted.

L&T, a USD 27 billion Indian multinational enterprise, is involved in engineering, procurement, and construction (EPC) projects, as well as hi-tech manufacturing and services, operating across multiple geographies.