Reliance Power faces Rs. 2.45 Crore penalty from Income Tax Dept
Reliance Power received a penalty of ₹2,44,93,394 from the Income Tax Department for Assessment Year 2016-17. The penalty is due to disallowance under Section 14A and a transfer pricing adjustment. The company plans to appeal the order, expecting a favorable outcome.
While the penalty amount is significant, the company's statement that it will not impact financial or operational activities beyond the penalty amount, and their intention to appeal, mitigates the immediate impact. However, the penalty itself warrants a medium impact assessment.
The company has been levied a penalty by the Income Tax Department, which is a negative development.
Reliance Power Limited has disclosed that the Income Tax Department – Assessment Unit (National Faceless Penalty Centre) has levied a penalty of ₹2,44,93,394/- under Section 271(1)(c) of the Income-tax Act, 1961, for the Assessment Year 2016-17.
The order, dated June 29, 2026, was received by the company on July 02, 2026. The penalty is related to a disallowance under Section 14A read with Rule 8D and a transfer pricing adjustment.
The company stated that this penalty will not have any impact on its financial or operational activities beyond the penalty amount itself. Reliance Power plans to appeal this order before the Appellate Authorities, expressing a reasonable expectation of a favorable outcome based on the merits of the case, prevailing law, and counsel's advice.
What to do with a filing like this
Reliance Power Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Reliance Power Limited. Read the original for the full detail.