Shares of Websol Energy Systems Limited rallied more than 10% in early trade after the company received a major legal relief on the tax front. The appellate tax authority has ruled in favour of Websol Energy and set aside a contingent tax demand of ₹73.04 crore, boosting investor confidence in the stock.
The favourable ruling relates to an income tax demand raised by the Assessing Officer on March 30, 2024, for the assessment year 2017–18. The order had imposed a tax liability of ₹73.04 crore, which was disclosed by the company as a contingent liability in its financial statements. Following the assessment, Websol Energy had challenged the order and filed an appeal before the Commissioner of Income Tax (Appeals).
The appellate authority has now accepted the company’s appeal and quashed the tax demand, effectively removing the overhang of a large potential liability. This development is seen as a significant positive for Websol Energy, as it strengthens the company’s balance sheet position and improves earnings visibility going forward.
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