Key Event Details

Surya Energy Photo Voltaic India Private Limited received an appellate order dated 2 November 2026 under Section 250 of the Income Tax Act, 1961 from the National Faceless Appeal Centre (NFAC) - Commissioner of Income-tax (Appeals), Income Tax Department for Assessment Year 2022-23.

Background and Historical Context

As disclosed in the Company's Prospectus dated 25 February 2026, Surya Energy had filed an appeal before the NFAC against the assessment order dated 25 February 2025 for AY 2022-23. The original assessment order proposed an addition of ₹621.52 million (₹62.15 crore) to Surya Energy's total income, resulting in a tax liability of ₹654.45 million. The assessment order also initiated penalty proceedings under Section 274 read with Section 271AAC(1) of the Income Tax Act.

A stay of demand was granted until 30 December 2026 by the Principal Commissioner of Income Tax, Bengaluru-1 vide order dated 11 September 2026.

Outcome of Appellate Proceedings

The NFAC - CIT(A) has passed an appellate order deleting the aforesaid additions made to the returned income of Surya Energy. The specific details are:

  • Order Reference: DIN & Order No. ITBA/NFAC/S/250/2026-27/1095104455(1) dated 2 November 2026
  • Appeal Number: NFAC/2021-22/10453905 (instituted on 26 March 2025)
  • Additions Deleted: ₹621,511,748 (₹62.15 crore)
  • Tax/Penalty/Fine/Interest Demanded: Nil

Financial Implications

There are no adverse financial implications for the listed company. The additions aggregating to ₹62,15,11,748 have been deleted, and the assessed income will be reduced accordingly upon the order being given effect to by the Assessing Officer. No tax, penalty, fine, or interest has been demanded as per the order.

Compliance Status

The NFAC - CIT(A) has held that Surya Energy has discharged its onus under Sections 68 and 69 of the Income Tax Act and has deleted the additions made by the Assessing Officer. No violations, contraventions, aberrations, or non-compliances have been identified or upheld by the authority.

No penalty, restriction, or sanction has been imposed pursuant to the order. The ground challenging initiation of penalty proceedings under Section 271AAC(1) of the Income Tax Act has been dismissed as premature, since no penalty has been levied at this stage.

Future Actions

No action will be taken by the listed Company. Surya Energy will await the order giving effect to the appellate order from the Assessing Officer and will evaluate further course of action, if any, including in respect of any penalty proceedings, in consultation with its tax advisors.