More Stories

Informist, Thursday, Jan. 22, 2026

 

--SC rejects income tax dept notice to reassess Adani Power's income 

--CONTEXT: Tax dept notice to Adani Power for assessment year 2014-15 

 

NEW DELHI – The Supreme Court Thursday rejected the income tax department's notice to reassess Adani Power Ltd.'s income for assessment year 2014-15 on the grounds of delay in filing an appeal against the Gujarat High Court's August 2024 order. The top court said that no case was made out by the income tax department to condone the delay in filing the appeal.

 

The income tax department had said that Adani Power had wrongly claimed additional depreciation of INR 2.03 billion on exchange rate fluctuation of INR 10.17 billion, with the latter being its liability enhanced on earlier years regarding imported plant and machinery acquired and put to use. The department said that the depreciation on the amount capitalised on account of foreign exchange fluctuation that could not be allowed under the provisions of section 32(1) of the Income Tax Act, 1961.

 

Adani Power had filed its return of income for assessment year 2014-15, declaring a total loss of INR 20.41 billion under the normal provisions and a loss of INR 3.27 billion under section 115JB of the 1961 Act. Thereafter, an assessment order was passed in 2017 and the case was closed.

 

However, in 2021, the income tax department again issued a notice to Adani Power for reassessing the company's income. Adani Power said that in the absence of fresh tangible material after the scrutiny assessment was over, reopening of assessment in such circumstances was not permissible. As per the 1961 Act, reopening of assessment beyond a period of four years from the end of relevant assessment year is also not tenable as there is no failure on part of the assessee to disclose fully and truly all facts necessary for the assessment, Adani Power said.

 

In 2024, the high court quashed the income tax department's notice against Adani Power and said there was no failure on part of the company to disclose all material facts. Challenging the high court's order, the income tax department moved the apex court.

 

At 1209 IST, shares of Adani Power Ltd. were up 1.6% at INR 139.84 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.