The xylotomy of the silicified wood from the Late Jurassic to Early Cretaceous Kota Formation of the Pranhita-Godavari Basin is studied and its systematic affinity is identified here. The wood is characterised by distinct growth rings with mixed pitting on radial tracheid walls, and taxodioid cross-field pits. The combination of the features observed in the present wood indicates that, it belongs to Protaxodioxylon of the taxodiaceous Cupressaceae s. l., as a new species Protaxodioxylon sahnii sp. nov. The comparison of wood with the modern representatives of the family suggests its relation with Taxodium. The present fossil wood with distinct growth rings characterised by their low percentage of latewood suggests that the growth conditions were favorable. The riparian habitat was inferred for the Protaxodioxylon sahnii sp. nov., based on sedimentological and other associated plant fossils. The vegetation in the study area is possibly favored by the influence of a subtropical climate with seasons, and by high levels of precipitation along the river banks.