The Indian e-commerce company Meesho has been issued a tax demand of approximately Rs 1,500 crore by the Income Tax Department for the 2023-24 assessment year. This demand results from adjustments made by authorities to the company's reported income.
Meesho strongly disagrees with the assessment and intends to contest it, stating it has legal grounds to do so. It notes a similar demand for the previous year is currently under an interim stay by the Karnataka High Court.
The company asserts the notice will not majorly impact its financial position or operations. This development follows Meesho's recent stock market listing and a period of significant revenue growth alongside widening quarterly losses.
Main Topics: Tax dispute, financial results, legal action, company reassurance.
Meesho, the Bengaluru-based ecommerce company, has received a tax demand of nearly Rs 1,500 crore from the Income Tax Department for the assessment year 2023-24, according to its filing with stock exchanges.
The company said the demand comes from an assessment order under Section 143(3) of the Income Tax Act, along with a notice under Section 156, bringing the total to Rs 1,499.7 crore, including interest.
This follows certain additions and adjustments made by the tax authorities to the income reported by Meesho for the year.
However, Meesho stated that it disagrees with the observations and adjustments in the assessment order and is reviewing the matter. âThe Company is currently evaluating the Assessment Order and does not concur with the observations and adjustments made in the Assessment Order,â the company said in the filing.
âThe Company believes that it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interest,â it added.
Meesho also pointed out that a similar demand had been raised for the previous year, 2022-23. In that case, the Karnataka High Court granted an interim stay on the notice through an order dated April 17, 2025, and the matter is still pending.
âThe Assessment Order along with the Demand Notice does not have any major adverse impact on the Company's financial position, operations, or other activities,â Meesho added, reassuring investors.
This notice comes just three months after Meesho listed on the stock market. The company reported a 13-fold jump in net losses for the October-December quarter, at Rs 491 crore, while operating revenue rose 31% to Rs 3,517 crore.
The company said the demand comes from an assessment order under Section 143(3) of the Income Tax Act, along with a notice under Section 156, bringing the total to Rs 1,499.7 crore, including interest.
This follows certain additions and adjustments made by the tax authorities to the income reported by Meesho for the year.
However, Meesho stated that it disagrees with the observations and adjustments in the assessment order and is reviewing the matter. âThe Company is currently evaluating the Assessment Order and does not concur with the observations and adjustments made in the Assessment Order,â the company said in the filing.
âThe Company believes that it has adequate legal and factual grounds to contest the same and is taking necessary steps to protect its interest,â it added.
Meesho also pointed out that a similar demand had been raised for the previous year, 2022-23. In that case, the Karnataka High Court granted an interim stay on the notice through an order dated April 17, 2025, and the matter is still pending.
âThe Assessment Order along with the Demand Notice does not have any major adverse impact on the Company's financial position, operations, or other activities,â Meesho added, reassuring investors.
This notice comes just three months after Meesho listed on the stock market. The company reported a 13-fold jump in net losses for the October-December quarter, at Rs 491 crore, while operating revenue rose 31% to Rs 3,517 crore.
Meridiano
