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Suzlon Energy Shares in Focus: Announced Tax Penalty Cancellation For FY16

Updated on: Jan 17, 2025, 1:22 PM IST
After a favourable ruling from the Income Tax Appellate Tribunal (ITAT), Suzlon Energy received a cancellation of tax penalty of ₹87.59 crore for the financial year 2016 (FY16).
Suzlon Energy Shares in Focus: Announced Tax Penalty Cancellation For FY16
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Suzlon Energy Ltd, a renewable energy solutions provider, announced on December 31 that a tax penalty of ₹87.59 crore for the financial year 2016 (FY16) has been cancelled. This decision came after a favourable ruling from the Income Tax Appellate Tribunal (ITAT).

Earlier, Suzlon had disclosed the imposition of the penalty, including the ₹87.59 crore for FY16, in its communication on March 28, 2024. In response, the company filed an appeal before the ITAT against the penalties. The ITAT ruling favoured Suzlon, particularly in relation to the quantum of disallowances for FY16.

As a result, Suzlon Energy share price rose over 2% and touched the day high of ₹64.67 after opening at ₹62.89 at 11:45 AM.

Impact of ITAT Ruling and JAO’s Order

The ITAT’s ruling on the quantum appeal in favour of Suzlon led to a subsequent order passed by the Jurisdictional Assessing Officer (JAO) on December 30, 2024. As a result, the penalty of ₹87.59 crore has been cancelled. The company has confirmed that this penalty has now been conclusively settled in its favour.

Clarification on Refunds

Suzlon clarified that this cancellation of the penalty does not lead to any refunds, as the penalties had been stayed or were under abeyance previously.

On the same day, Suzlon Energy also announced an income tax refund of ₹173 crore, following another favourable judgment from the ITAT. This refund relates to a penalty of ₹172.76 crore that Suzlon was charged by the National Faceless Penalty Centre of the Income Tax Department concerning certain disallowances, including the claim of depreciation on goodwill for FY17.

CRISIL Rating Upgrade

In another release, Suzlon Energy announced that CRISIL has upgraded the ratings of SE Forge Limited, a wholly-owned subsidiary’s Long-term rating to CRISIL BBB+ / Positive (Upgraded from ‘CRISIL BBB- / Stable) while its short-term rating to CRISIL A2 (Upgraded from ‘CRISIL A3’).

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 1, 2025, 11:54 AM IST

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