Renewable energy solutions provider Suzlon Energy Ltd on Tuesday (December 31) said a tax penalty of ₹87.59 crore imposed on the company for FY16 has been cancelled following a favourable ruling by the Income Tax Appellate Tribunal (ITAT).
“This is in continuation to our letter dated 28th March 2024 inter alia referring to a penalty order u/s.271(1)(c) of the Income-tax Act, 1961 (“Act”) of ₹87.59 Crores by National Faceless Penalty Centre, Income Tax Department, in respect of certain disallowances for the financial year (“FY”) 2015-16,” Suzlon Energy said in a regulatory filing.
The company had earlier disclosed the penalty orders, including ₹87.59 crore for FY16, in its communication dated March 28, 2024. Subsequently, Suzlon Energy appealed against the penalties before the Income Tax Appellate Tribunal (ITAT). The ITAT ruled in favour of the company concerning the quantum of disallowances for FY16.
“In the appeals filed before the Income Tax Appellate Tribunal (“ITAT”), ITAT has decided the quantum appeal in favour of the Company for the said FY. Consequent to the effect-giving order passed by the Jurisdictional Assessing Officer (JAO) received by the Company on 30th December 2024, the JAO has cancelled the aforesaid penalty order. As a result, the penalty of ₹87.59 crore is conclusively settled in favour of the company,” Suzlon Energy added.
The company clarified that the cancellation does not result in refunds as the penalties were stayed or under abeyance.
Yesterday, Suzlon Energy announced that it will receive an income tax refund worth ₹173 crore after a favourable judgement from the Income Tax Appellate Tribunal (ITAT).
In its exchange filing, Suzlon said that the company was charged a penalty of ₹172.76 crore by the National Faceless Penalty Centre of the Income Tax Department with regards to certain disallowances, including that of claim of depreciation on goodwill for financial year 2017.
