Suzlon Energy Wins ₹87.59 Crore Tax Penalty Appeal, Secures ₹173 Crore Refund

31 Dec 2024 , 05:23 PM

Suzlon Energy Ltd has announced on December 31, 2024 that a tax penalty of ₹87.59 crore for FY16 has been withdrawn. The ₹87.59 crore penalty, which was issued under section 271(1)(c) of the Income Tax Act, was related to certain disallowances for FY2015-16. The company had disclosed the penalty initially in March 2024.

Suzlon Energy had appealed against the penalty and the Income Tax Appellate Tribunal (ITAT) had pronounced in favour of the company about the quantum of disallowances. Post that order, Jurisdictional Assessing Officer (JAO) had ordered on December 30, 2024 to cancel the penalty.
Cancellation of which means now penalty of ₹87.59 crores have finally been quashed in case of Suzlon Energy.

However, Suzlon clarified that by this cancellation nothing is being returned as the appeal process had been stayed or still under abeyance for that period. In a related development, Suzlon Energy announced that it will get an income tax refund of ₹173 crore after the favorable judgment by the ITAT. This refund relates to a previous penalty of ₹172.76 crore on account of depreciation on goodwill for FY2017.

On December 31, 2024, shares of Suzlon Energy Ltd closed at ₹62.29 which is a 1.42% gain than the previous close. The stock has witnessed a total of 77% in the last one year, and 0.05% dip in the last six months.