BlackBuck Income Tax Penalty Proceedings for AY2018-19 Dropped; Penalty Fixed at Nil

BlackBuck Limited has informed the stock exchanges through an exchange filing dated July 25, 2026, that the Income Tax Department has dropped penalty proceedings relating to Assessment Year (AY) 2018-19.  

The company received the order on July 24, 2026, under Section 270A of the Income-tax Act, 1961. The department has determined the penalty at Nil after the underlying tax addition was deleted.  

Background of the Tax Matter 

The case originated from an assessment order dated June 1, 2021. Tax authorities had disallowed ₹10.30 crore claimed by the company as Employee Stock Option Plan (ESOP) expenditure under Section 37(1) of the Income-tax Act.  

Based on this disallowance, penalty proceedings were initiated on allegations of under-reporting arising from misreporting of income.  

Appeal Changed the Position 

The company challenged the addition before the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC).  

In its order dated March 9, 2026, the appellate authority deleted the tax addition, referring to the Karnataka High Court's ruling in Biocon Ltd. vs. DCIT. With the addition set aside, the basis for the penalty proceedings no longer remained.  

Penalty Fixed at Nil 

Following the appellate order, the Assessment Unit of the Income Tax Department issued a fresh order on July 24, 2026, dropping the proceedings initiated under Section 270A.  

The filing stated that no penalty, restriction or sanction has been imposed and the penalty amount has been fixed at ₹Nil. The company has taken the order on record, and no further action is required in the matter.  

No Financial Impact 

BlackBuck noted that the order has no adverse financial, operational or other impact on its business.  

According to the regulatory disclosure, the proceedings have been closed following the deletion of the disputed addition, bringing the AY2018-19 matter to an end without any financial liability for the company. 

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BlackBuck Limited Share Price Performance  

As of July 24, 2026, 3:30 pm, BlackBuck Ltd share price closed at ₹541.80, down 0.45% from the previous closing price. 

Conclusion  

With the penalty proceedings now withdrawn and the penalty fixed at nil, the tax matter relating to AY2018-19 stands closed. BlackBuck has stated that the order does not have any financial or operational impact. 

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