Income Tax Department Drops Penalty Proceedings in Favour of Black Buck Ltd
Black Buck Ltd, formerly Zinka Logistics Solutions Limited, has received a favourable decision from the Income Tax Department regarding penalty proceedings initiated under Section 270A of the Income-tax Act, 1961. The department dropped the proceedings related to Assessment Year (AY) 2018-19, determining the penalty at Nil.The order, dated July 24, 2026, followed a process where an initial addition concerning Employee Stock Option Plan (ESOP) expenditure had been made against the company's income for AY 2018-19. The original matter involved alleged under-reporting or misreporting of income resulting from the disallowance of ESOP expenditure, which was valued at Rs. 10,30,00,000/- and claimed under Section 37(1) of the Act.
The penalty proceedings were initiated following the assessment order dated June 1, 2021. Subsequently, the CIT(A)/NFAC deleted this underlying addition, which led to the eventual conclusion of the penalty proceedings in the company's favour.
The key details surrounding the tax outcome are summarized below:
| Assessment Year | Original Allegation | Penalty Determination | Outcome |
|---|---|---|---|
| 2018-19 | Misreporting related to ESOP expenditure of Rs. 10,30,00,000/- under Section 37(1) | Rs. NIL | Penalty proceedings dropped in full |
The company reported that the order is favourable and has no adverse financial impact on its operations. The resolution was reached after the CIT(A)/NFAC deleted the addition related to ESOP expenditure.
BLACKBUCK Stock Price Movement
On Friday, shares of BLACKBUCK LIMITED slipped by 0.45% to settle at ₹539.35 after a day of trading. The stock recorded a volume of 138,956 shares, shedding ₹2.45 from the previous close.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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