Tax Notice: This recently listed company received an income tax notice of ₹1,500 crore, action may be seen on the stock on Monday.:Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates an e-commerce marketplace based on a value-commerce model primarily for small sellers and customers in tier-II and smaller cities.

News Topical, Digital Desk : Tax Notice: E-commerce platform Meesho has received a big tax notice from the Income Tax Department. The company said that it has been issued an income tax demand notice of around ₹1,500 crore for the assessment year 2023-24 and it will challenge this order legally. The company informed the stock exchange on March 7 that this demand has been made through an assessment order issued under section 143(3) of the Income Tax Act and a demand notice under section 156.

Tax demand of over ₹1,499 crore

According to the company, the Income Tax Department has raised a demand of ₹1,499,73,82,840, including applicable interest. Meesho stated that it disagrees with the findings and adjustments made in the assessment order and will challenge the matter in court. In its statement, the company said that it has sufficient legal and factual grounds to contest the order and is taking necessary steps to protect its interests. Meesho also clarified that this tax notice will not have any significant negative impact on the company's business, operations, or other activities. The company also stated that a similar tax notice was previously issued for the assessment year 2022-23. This matter is currently pending in the Karnataka High Court, and the court granted an interim stay on the demand notice on April 17, 2025. This notice comes after the recent quarterly results. This tax notice comes at a time when the company reported a sharp increase in losses in its December quarter results.

Net loss: ₹491 crore (previous year ₹37.4 crore)
Earnings: ₹3,517.6 crore (32% growth)
The company's expenses rose faster than revenue during the quarter, leading to a widening loss. However, orders and user numbers on the platform continued to grow.
Orders: Up 36% to 69 crore
Annual transacting users: Up 34% to 251 million

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates an e-commerce marketplace based on a value-commerce model primarily for small sellers and customers in Tier-II and smaller cities.

The company said it will pursue legal options against the tax demand and will continue its business as usual.