Supreme Court Sets Aside Income Tax Order Against JSW Energy, Directs Fresh Hearing
New Delhi: The Supreme Court has set aside an income tax order passed against JSW Energy Limited and directed the Assessing Officer to give the company a fresh opportunity of hearing.
The order was passed on 8 September 2026 by a bench of Justices J.B. Pardiwala and K. Vinod Chandran in Special Leave Petition (C) No. 26714 of 2026.
What Was the Case About
JSW Energy had challenged an order dated 29 March 2025 that gave effect to an earlier appellate order. When the company approached the Bombay High Court, the High Court declined to interfere and asked the company to raise all its contentions in a regular appeal.
The Supreme Court issued notice only on the limited question of whether the company was given a proper opportunity of hearing before the 29 March 2025 order was passed. This was especially relevant because earlier High Court orders had specifically directed that a hearing should be granted.
What the Court Found
Senior Counsel Arvind P. Datar appeared for JSW Energy. Additional Solicitor General S. Dwarakanath, appearing for the tax department, fairly conceded that no opportunity of hearing had been granted.
The Court noted that the operative portion of the 29 March 2025 order itself mentioned that a reasonable opportunity of hearing should be given to the assessee. Since this was not done, the Supreme Court set aside both the 29 March 2025 order and the High Court judgment.
Directions Issued
The Court directed JSW Energy to appear before the Assessing Officer on 29 September 2026. The Assessing Officer may also fix any other date after giving due notice to the company or its authorised representative.
The Assessing Officer has been asked to hear the company and then pass a fresh order. The Court made it clear that both sides are free to raise all their contentions before the Assessing Officer.
The Supreme Court disposed of the Special Leave Petition without making any observation on the merits of the tax dispute.
Source: Supreme Court of India order dated 8 September 2026 in SLP (C) No. 26714 of 2026 (JSW Energy Limited vs Assistant/Deputy Commissioner of Income Tax & Anr.).