Om Power Transmission gets ₹1.12 cr ITC case dropped by State Tax Ahmedabad
- State Tax Ahmedabad dropped proceedings against Om Power Transmission for alleged ineligible ITC of ₹1.12 crore for FY23
- Company avoids payment of ₹1.12 crore tax plus ₹89.22 lakh in interest and penalty
- Authority verified submissions and found no evidence of excess or ineligible ITC availment
- No material impact on financial or operational activities reported by the company
*this image is generated using AI for illustrative purposes only.
Om Power Transmission Limited has received an order from the State Tax authority in Ahmedabad dropping proceedings related to an alleged ineligible Input Tax Credit (ITC) of ₹1.12 crore for FY23.
The Office of the Assistant Commissioner, Ghatak 5 (Ahmedabad), concluded that the company had not availed any ineligible or excess ITC during the financial year 2022-23. Consequently, the company is not required to make any payment towards the disputed tax amount or the associated interest and penalty of ₹89.22 lakh.
Order Details and Financial Impact
The disclosure was made to the National Stock Exchange and BSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was dated September 21, 2026, and received by the company on September 22, 2026.
The authority examined the reply and submissions made by Om Power Transmission. Upon verification, it was observed that the allegations regarding ineligible/excess availment of ITC were unfounded. As a result, the proceedings were dropped entirely.
| Particulars | Details |
|---|---|
| Authority | Office of Assistant Commissioner, Ghatak 5 (Ahmedabad), State Tax |
| Alleged Ineligible ITC | ₹1.12 crore |
| Related Interest & Penalty | ₹89.22 lakh |
| Total Liability Avoided | ₹2.01 crore |
| Date of Order | September 21, 2026 |
| Fiscal Year in Question | FY23 |
What the Numbers Show
The dropping of these proceedings eliminates a contingent liability totaling approximately ₹2.01 crore (₹1.12 crore in principal tax plus ₹89.22 lakh in interest and penalty). While the company stated there is no material impact on its financial or operational activities, the resolution removes a significant near-term cash outflow risk associated with the FY23 tax assessment. This outcome confirms the validity of the company's ITC claims for that period, as verified by the state tax authority.
Historical Stock Returns for Om Power Transmission
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.93% | -2.63% | -3.84% | -16.36% | -16.36% | -16.36% |
How will the elimination of the ₹2.01 crore contingent liability impact Om Power Transmission's working capital allocation for upcoming capital expenditure projects?
Does this favorable ruling set a precedent for how state tax authorities in Gujarat might handle similar Input Tax Credit disputes for other power transmission companies in FY24?
Will the removal of this tax risk lead to a re-rating of the company's stock price by analysts who previously factored in potential regulatory liabilities?
20
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
