According to an exchange filing, Swiggy Ltd., an online meal delivery and rapid commerce platform, received an extra tax demand of ₹158 crore from the Income Tax Department on Tuesday, April 1, for suspected violations.
Swiggy received a notification from the Income Tax Department requesting ₹158.25 crore for the April 2021–March 2022 period, per the BSE filing.
In the filing, the company said that it had obtained an assessment order for the period of April 2021 to March 2022, which included an addition of INR 158,25,80,987/-.
Among the purported violations mentioned by the Income Tax Department are cancellation fees given to retailers, which were prohibited by Section 37 of the 1961 IT Act.
Additionally, according to the revenue Tax Department, the business failed to pay taxes on interest revenue received in order to receive an income tax refund (ITR).
In the BSE filing, the company stated, “We think we have a strong case on merits, and the company will be filing an appeal against the order before the appropriate authority.”
The filing states that the financials and operations of the meal delivery company would not be significantly impacted by this tax order.
