New Delhi, April 1: Leading food delivery platform Swiggy has received a tax demand notice of ₹158.25 crore from the Income Tax Department over alleged violations related to cancellation charges and interest income on tax refunds. The company has stated its intention to challenge the order through an appeal.
As per Swiggy’s regulatory filing with the Bombay Stock Exchange (BSE), the tax authorities issued the assessment order for the financial year April 2021 to March 2022, citing an additional tax liability of ₹158.25 crore. The department claims that the company violated Section 37 of the Income Tax Act, 1961, by including cancellation charges paid to merchants as deductible business expenses.
Additionally, the tax notice asserts that Swiggy failed to pay tax on the interest earned from income tax refunds, leading to the demand for additional dues.
In response to the order, Swiggy expressed confidence in its position and stated that it would appeal the decision before the appropriate authority. The company emphasized that the tax order is not expected to have any significant impact on its financial health or operational performance.