E-Commerce giant Meesho has received an income tax assessment order under Section 143(3) for AY 2023-24, raising a massive tax demand of INR 1,499.74 crore (including interest) from the Income Tax Department‘s Assessment Unit.
The company, in a regulatory filing before the exchange, disclosed that the order is accompanied by a section 156 demand notice, stems from adjustments/additions to Meesho‘s reported income, though specifics remain undisclosed pending evaluation.
The Bengaluru‑based social commerce unicorn, listed on BSE/NSE, states it disagrees with the observations and is pursuing legal recourse, citing a similar AY 2022-23 demand, stayed by Karnataka High Court on April 17, 2025, currently sub-judice.
Last year, Meesho received a show-cause notice dated January 25, 2025, under the Income Tax Act, 1961, for AY 2022-23, proposing adjustments including disallowance of advertisement/communication expenses, addition of mark-to-market forex gains and TDS on foreign remittances.
After responding on February 7, 2025, Meesho received a penalty order under section 274 r/w 270A, assessment order under section 143(3) r/w 144B, and demand notice under section 156 raising INR 572.07 crore.
Meesho challenged the orders through a writ petition before the Karnataka High Court, alleging violation of natural justice principles. The High Court granted an interim stay on April 17, 2025, and the matter remains sub-judice.
Meesho asserts no material adverse impact on its financials or operations, as the company holds adequate legal and factual grounds to contest, with the disclosure fulfilling SEBI LODR Regulation 30 and Master Circular requirements.
