Suzlon Energy Limited has received a significant relief as the Income Tax Appellate Tribunal (ITAT) ruled in its favor, canceling a penalty of Rs 172.76 crore levied under Section 270A of the Income-tax Act, 1961. The penalty was initially imposed by the National Faceless Penalty Centre of the Income Tax Department for disallowances, including depreciation on goodwill, for the financial year 2016-17.
Key Details:
- Background: The penalty of Rs 172.76 crore was imposed due to the disallowance of claims, including depreciation on goodwill for FY 2016-17.
- ITAT Ruling: Following Suzlon’s appeal, ITAT ruled in favor of the company, overturning the disallowances.
- Jurisdictional Assessing Officer (JAO): The JAO has passed the effect-giving order, confirming the cancellation of the penalty as of December 29, 2024.
This decision resolves a significant financial burden for Suzlon Energy and is expected to positively impact its financial standing. The company shared this update in compliance with regulatory disclosure requirements.
