Suzlon Energy shares fall as firm receives two tax penalty orders

Shares of Suzlon Energy Ltd fell over 3% amid a stellar rally in the market today after the I-T department issued two income tax penalty orders to it for financial year 2015-16 (FY16) and FY17. The two penalty orders were worth Rs 87.59 crore and Rs 172.76 crore, respectively.

The stock fell 3.29% to Rs 39.20 today. Market cap of the firm slipped to Rs 55,263 crore on BSE. A total of 42.03 lakh shares of the firm changed hands amounting to a turnover of Rs 16.90 crore on BSE.

Suzlon Energy shares have a beta of0.7, indicating low volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 50.4, signaling it's trading neither in the overbought nor in the oversold zone.

Suzlon Energy stock is trading higher than the 5 day, 10 day, 20 day, 150 day, 200 day but lower than the 30 day, 50 day  and 100 day moving averages. Suzlon Energy shares fell to a 52-week low of Rs 7.85 on March 31, 2023.  

“This is to inform that National Faceless Assessment Centre, Income Tax Department, has issued orders for FY 2015-16 and FY 2016-17 levying penalty in respect of disallowance of claim of depreciation on goodwill, disallowance u/s.14A and disallowance u/s.36(1)(va). The details, as required, in terms of the Listing Regulations are as per enclosed Annexure," Suzlon stated in a BSE filing.

"Based upon the judicial precedents, the company believes that the penalty proceedings should have been kept in abeyance until conclusion of the quantum appeal against disallowances. Given that the quantum appeal against subject disallowances is still pending before the Tribunal on merits, Suzlon also believes that the said penalty orders are premature," it also said.

Suzlon further mentioned that it is in the process of challenging penalty orders before appellate/judicial forums and is confident of defending the same.

Suzlon Energy logged a 160 per cent rise in its Q3 profit at Rs 203.2 crore against Rs 69.8 crore in the year ago period. The manufacturer of wind turbines reported a 7 per cent YoY rise in revenue at Rs 1,560.5 crore.

Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.