Reliance Power gets Rs 2.45 Cr tax penalty for AY 2016-17
Reliance Power received a penalty of Rs 2.45 crore from the Income Tax Department for Assessment Year 2016-17 regarding a disallowance under Section 14A and transfer pricing adjustments. The company stated the penalty has no material impact on its operations and plans to file an appeal before the Appellate Authorities.
*this image is generated using AI for illustrative purposes only.
Reliance Power has been penalised ₹2.45 crore by the Income Tax Department for Assessment Year 2016-17. The order, dated June 29, 2026, was received by the company on July 02, 2026. The penalty was levied under Section 271(1)(c) of the Income-tax Act, 1961, by the Assessment Unit (National Faceless Penalty Centre).
The penalty follows a disallowance under Section 14A read with Rule 8D and a transfer pricing adjustment. The company disclosed that apart from the monetary penalty of ₹2,44,93,394, there is no impact on its financial, operational, or other activities.
Reliance Power intends to challenge the order. Based on the merits of the matter, prevailing law, and legal counsel, the company plans to file an appeal before the Appellate Authorities. Management has expressed a reasonable expectation of a favourable order.
Details of the Order
The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The table below outlines the key details of the regulatory action:
| Sr. No. | Disclosure Item | Details |
|---|---|---|
| i. | Name of the Authority | Income Tax Department – Assessment Unit (National Faceless Penalty Centre) |
| ii. | Nature and details of the action(s) taken or order(s) passed | Levy of Penalty of ₹2,44,93,394/- under Section 271(1)(c) of the Income-tax Act, 1961 for Assessment Year 2016-17 |
| iii. | Date of receipt of direction or order | Order dated June 29, 2026 received on July 02, 2026 |
| iv. | Details of the violation(s) / contravention(s) committed | Disallowance under Section 14A read with Rule 8D and a transfer pricing adjustment |
| v. | Impact on financial, operation or other activities | No impact on financial, operation or other activities of the Company, other than the amount of ₹2,44,93,394/- to be paid as penalty |
Historical Stock Returns for Reliance Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.32% | -0.85% | -9.61% | -29.67% | -62.26% | +91.67% |
How will the legal costs and potential delays associated with the appeal process affect Reliance Power's short-term liquidity?
Could this penalty trigger similar scrutiny or adjustments for other assessment years within the company?
What is the likelihood of the Appellate Authority overturning the penalty given the specific grounds of Section 14A and transfer pricing adjustments?
16
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
