Websol Energy jumps 14% after winning ₹73-crore income-tax dispute

Websol Energy System shares zoomed 14 per cent on BSE, registering an intra-day high of ₹97.55 per share. The stock was in demand after the company won its income-tax appeal for AY 2017–18, and an earlier ₹73.04-crore tax demand—previously shown as a contingent liability—will no longer be payable.

 

At 934 AM, Websol Energy Systems share price was trading 13.39 per cent higher at ₹96.95 per share on BSE. In comparison, the BSE Sensex was up 0.14 per cent at 85,644.39. 

 

The company has a total market capitalisation of ₹4,085.57 crore. Its 52-week high was at ₹189.11, and its 52-week low was at ₹79.85.   CATCH STOCK MARKET LIVE UPDATES TODAY 

 

According to the filing, Websol Energy System received a major relief in a long-standing tax dispute for the assessment year 2017-18, with the Commissioner of Income Tax (Appeals), Kolkata, ruling in the company's favour. 

 

The appeal was filed against an earlier order from March 2024, where the Assessing Officer (AO) had made additions of ₹184.99 crore under Section 115JB and disallowed expenses of ₹1.51 crore, resulting in a total tax demand of ₹73.04 crore. 

 

“In respect of AY 2017-18, the Assessing officer vide order dated 30th March, 2024 made additions of ₹184.99 crore under section 115JB of the Income-tax Act, 1961 (‘the Act’) and disallowed expenses to the extent of ₹1.51 crore, under normal provisions of the Act, thereby raising a tax demand of ₹73.04 crore. The company duly filed an appeal before the CIT (Appeals) against the said order. The CIT(Appeals) after perusing the submissions filed by the Company, vide its order, has decided the appeal in favour of the company,” the filing read.  ALSO READ | NIBE share price jumps 6% as board okays fundraise of up to ₹250 cr 

Following this favourable appellate order, the company clarified that the ₹73.04 crore demand—which was previously disclosed as a contingent liability—is no longer payable, effectively removing a significant potential financial burden from its books.

 

“The tax demand of ₹73.04 crore, as raised by AO earlier, was duly disclosed as a contingent

liability. Since the appeal has now been decided in favour of the Company, such tax demand would no longer be payable by the company,” the filing read.