Online food delivery and quick commerce platform Swiggy Ltd on Tuesday, April 1, received an additional tax demand of ₹158 crore from the Income Tax Department over alleged contraventions, the company said in an exchange filing.
According to the BSE filing, Swiggy received the Income Tax Department notice demanding ₹158.25 crore for the April 2021-March 2022 period.
“The company has received an assessment order for the period April 2021 to March 2022, where an addition of INR 158,25,80,987/- has been made,” disclosed the company in the filing.
The alleged contraventions cited by the Income Tax Department include cancellation charges paid to merchants, which were not allowed under Section 37 of the IT Act of 1961.
The Income Tax Department also claimed that the company had not paid tax on the interest income which it earned for the income tax refund (ITR).
“We believe that we have a strong case on merits, and the company will be filing an appeal against the order before the appropriate authority,” said the company in the BSE filing.
According to the filing, this tax order will have no ‘major’ effect on the food delivery giant’s financials and operations.
