Suzlon Energy Wins ₹87.59 Crore Tax Appeal, ITAT Quashes Penalty Order for FY16

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Suzlon Energy Ltd has secured a favorable ruling from the Income Tax Appellate Tribunal (ITAT), which has quashed a ₹87.59 crore penalty imposed by the Income Tax Department for the financial year 2015–16. The cancellation follows a detailed appeal process and marks a significant legal win for the renewable energy major.

Key Highlights:

The penalty was originally levied under Section 271(1)(c) of the Income Tax Act for alleged disallowances in FY16.
Suzlon had disclosed the penalty in its March 2024 regulatory filings and subsequently appealed to the ITAT.
The ITAT ruled in favor of Suzlon, and the Jurisdictional Assessing Officer issued an effect-giving order on December 30, 2024, officially cancelling the penalty.

Operational Context:

The cancellation does not result in a refund, as the penalty was under stay or abeyance during the appeal process.
This ruling follows another ITAT decision that granted Suzlon a ₹173 crore refund related to a separate penalty for FY17.
The combined relief of ₹260.35 crore across two fiscal years strengthens Suzlon’s financial position and legal credibility.

Market Outlook

Suzlon shares closed at ₹62.23 on December 31, 2024, up 1.19 percent, reflecting investor optimism.
Analysts view the ruling as a boost to Suzlon’s governance profile, especially as it continues to win large-scale renewable energy orders.

Source: CNBC TV18, IndiaInfoline, Business Today (December 31, 2024)