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Ecommerce major Meesho has received a tax demand worth ₹1,499.74 Cr, including applicable interest, from the Income Tax (IT) department’s assessment unit for the assessment year 2023-24 (FY24).
In a filing with the stock exchanges on March 6, the Bengaluru-based company said it had received an assessment order under Section 143(3) of the Income-tax Act, along with a demand notice under Section 156 dated March 5, 2026.
For context, Section 143 (3) of the IT Act, pertains to scrutiny assessment, where an assessing officer (AO) from the IT department conducts a detailed investigation to verify the accuracy of a filed return. AO examines accounts, documents, and evidence to check the truthfulness of income, deductions, and exemption.
“As per the Assessment Order passed under Section 143(3) of the Income-tax Act, 1961 for Assessment Year 2023-24, the Income Tax Department has made certain additions/adjustments to the income reported by the company,” Meesho’s disclosure read.
Meesho said it does not agree with the observations and adjustments made in the order and is currently reviewing the assessment. The company added that it believes it has adequate legal and factual grounds to challenge the demand and will take appropriate steps to protect its interests.
This is not the first time Meesho has received such a demand from the IT authorities. A similar tax demand was issued for the assessment year 2022-23, which was disclosed in the company’s prospectus filed in December 2025.
As per its prospectus, Meesho received a show cause notice from the IT department for the assessment year 2022-23 (FY23). The notice proposed adjustments to the company’s reported income, including the disallowance of certain advertisement and communication expenses, addition of mark-to-market gains on forward contracts, and issues related to tax deducted at source on foreign remittances.
Following the company’s response, the tax authority issued an assessment order under Section 143(3) of the Income Tax Act, 1961 along with a demand notice under Section 156 of the act and a penalty order, raising a total tax demand of ₹572.1 Cr.
Challenging these notices, Meesho filed a writ petition before the High Court of Karnataka in April 2025, arguing that the assessment violated principles of natural justice and relevant legal provisions. The court subsequently granted an interim stay on the demand, and the case remains pending adjudication.
On the financial front, Meesho reported a sharp rise in losses in its first earnings report since listing in December last year. The company’s Q3 FY26 net loss widened nearly 13X to ₹491 Cr from to ₹37 Cr loss incurred in the same period last year. However, operating revenue for the period under review grew 32% YoY to ₹3,518 Cr.
Shares of Meesho ended Friday’s trading session 0.44% higher at ₹159.10 on the BSE.
The post Meesho Gets ₹1,500 Cr Demand Notice From Income Tax Dept appeared first on Inc42 Media.
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