BlackBuck Limited has received a favorable order from the Income Tax Department regarding penalty proceedings for Assessment Year 2018-19.
Background of the Case
The penalty proceedings were initiated consequent to an assessment order dated June 1, 2021 passed under Section 143(3) r.w.s. 144B for AY 2018-19. The original assessment had made an addition of ₹10,30,00,000 (₹10.3 crore) towards disallowance of Employee Stock Option Plan (ESOP) expenditure claimed under Section 37(1) of the Income-tax Act, 1961. This was alleged to constitute under-reporting in consequence of misreporting of income under Section 270A.
Legal Development
The Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC), vide order dated March 9, 2026, deleted the said addition of ₹10.3 crore, relying on the judicial precedent of Biocon Ltd. vs. DCIT [2020] 121 taxmann.com 351 (Kar.).
Current Order
Consequent to the deletion of the underlying quantum addition by CIT(A)/NFAC, the Income Tax Department vide order dated July 24, 2026 (Reference: ITBA/PNL/F/270A_1/2026-27/1091419624(1)) has dropped the penalty proceedings in full and determined the penalty at ₹NIL.
Financial Impact
The order is favourable with no adverse financial impact on the company. The underlying matter stands concluded in the company's favour.
Company Action
The company has taken the order on record and no further action is required as the matter stands concluded.
Additional Information
The information will be available on the company's website at www.blackbuck.com.