BlackBuck Limited announced that the Income Tax Department has dropped penalty proceedings initiated under the Income-tax Act, 1961 for Assessment Year 2018-19. This follows the deletion of an underlying addition related to ESOP expenditure by the CIT(A)/NFAC. Consequently, the penalty has been determined at NIL, marking a favourable outcome with no adverse financial impact on the company.
Key Regulatory Update
BlackBuck Limited has received a significant order from the Income Tax Department, officially dated July 24, 2026. This order confirms the dropping of penalty proceedings that were initiated for Assessment Year 2018-19. The proceedings were initially based on provisions of the Income-tax Act, 1961.
Reason for Dropped Proceedings
The decision to drop the penalty proceedings is a direct result of the deletion of an underlying addition concerning ESOP expenditure. This deletion was confirmed by the CIT(A)/NFAC. As a consequence of this deletion, the total penalty has been determined to be NIL. The company views this as a favourable outcome with no adverse financial implications.
Details of the Order
The original addition that led to the penalty proceedings amounted to Rs. 10,30,00,000/-. This was related to the disallowance of Employee Stock Option Plan (ESOP) expenditure claimed under Section 37(1) of the Income-tax Act, 1961. An assessment order dated June 1, 2021, had initially made this addition. However, a subsequent order dated March 9, 2026, by the CIT(A)/NFAC deleted this addition, thereby leading to the current favourable outcome.
Impact on Company Operations
BlackBuck Limited has formally taken this order on record. No further action is required from the company’s end, as the matter has been concluded in its favour. The company has stated that the order is favourable and carries no adverse financial impact on its operations or financial standing.
Source: BSE
