BlackBuck Limited has received a favorable ruling from the Income Tax Department regarding its ESOP expenses for the 2021-22 and 2022-23 assessment years. The Deputy Commissioner of Income Tax has issued orders giving effect to the appellate authority’s decision, which sets aside previous disallowances of ESOP-related expenses. This development brings legal clarity to the company’s past tax claims and carries no adverse financial impact on the business operations.
Favorable Tax Ruling
In a positive development for the company, BlackBuck Limited has received formal orders from the Income Tax Department confirming the set-aside of previous disallowances. The orders, dated April 20, 2026, pertain to the assessment years 2021-22 and 2022-23. By giving effect to the earlier appellate orders, the tax authorities have now accepted the company’s claims regarding ESOP expenses that were previously contested.
Impact on Financials
The total ESOP-related expenses affected by these orders amount to ₹15,93,74,127 for the 2021-22 assessment year and ₹90,65,37,976 for the 2022-23 assessment year. The company has confirmed that these orders are entirely favorable and do not result in any adverse financial implications. This resolution effectively resolves the tax dispute regarding the treatment of these employee stock option expenses for the specified periods.
Source: BSE
