Websol Energy Share Price Jump 14% After Winning ₹73-Crore Income-Tax Appeal

Websol Energy System share price (NSE: WEBELSOLAR) rallied sharply on Wednesday, rising nearly 14% on the BSE after the company received a favourable verdict in a long-pending income-tax case.

The stock touched an intraday high of ₹97.55 per share. Around 9:34 AM, it was trading 13.39% higher at ₹96.95, while the BSE Sensex was up 0.14%.

Reason Behind The Sharp Rise In Websol Energy Share Price

The rally came after Websol Energy won its income-tax appeal for the assessment year 2017–18. The Commissioner of Income Tax (Appeals), Kolkata, ruled in favour of the company, providing major financial relief.

As a result, a ₹73.04 crore tax demand, which was earlier disclosed as a contingent liability, will no longer be payable.

Details Of The Tax Dispute

In March 2024, the Assessing Officer had raised a tax demand of ₹73.04 crore after making:

• Additions of ₹184.99 crore under Section 115JB, and
• Disallowance of expenses worth ₹1.51 crore

Websol Energy challenged this order before the CIT (Appeals), which has now decided the case in the company’s favour after reviewing its submissions.

Impact On The Company’s Financials

Following the appellate order, the company clarified that the earlier tax demand will be removed from its contingent liabilities, easing a significant potential financial burden on its balance sheet.

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Conclusion

The favourable income-tax ruling has boosted investor confidence in Websol Energy, leading to a sharp rise in its share price. The removal of the ₹73-crore tax liability strengthens the company’s financial position and outlook.

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