Shares of Websol Energy System rise 14% after defusing Rs 73 crore tax bomb

Shares of Websol Energy System rose as much as 14.1% to Rs 97.55 on the BSE on Wednesday after it won a major tax case, wiping out a demand of Rs 73.04 crore that hung like a cloud over its books.The rally came after Websol Energy System announced that the Commissioner of Income Tax (Appeals), Kolkata, had ruled in its favor in a long-pending dispute for the assessment year 2017-18. The original assessment order included additions of Rs 184.99 crore under Section 115JB of the Income-tax Act and disallowed expenditure of Rs 1.51 crore under normal provisions.

These additions had translated into a tax asset of Rs 73.04 crore, which the company had treated as a contingent liability. With the Appellate Body overruling the claim, that amount will no longer be payable, effectively removing a major overhang from the company’s balance sheet and giving shareholders a clearer view of the company’s financial position.

The announcement sparked immediate buying interest in the stock, sending it sharply higher in Wednesday’s session, even as the broader context surrounding the company remains challenging.

Stocks are still deep in the red for 2025

Shares of Websol Energy System are still down 46% so far in 2025, showing how much ground the stock has lost over the year. From a technical point of view, the picture remains mixed to weak.

The stock is trading below six of its eight major simple moving averages, including the 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs, while remaining above the 5- and 10-day SMAs. The Relative Strength Index is at 30.5, a level close to the oversold zone, while the Moving Average Convergence Divergence is at -8.5 and remains below both the center and signal lines, reinforcing a bearish indicator. Websol Energy System Limited is a renewable energy company operating in the solar energy sector, with a focus on photovoltaic products and related solar energy solutions for domestic and international markets.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)