Food and grocery delivery platform Swiggy has been served a tax demand notice of over Rs. 158 crore by the Income Tax Department for the assessment period from April 2021 to March 2022. The notice was issued by the Deputy Commissioner of Income Tax, Central Circle, Bengaluru, adding an additional Rs. 1,58,25,80,987 to the company’s taxable income.
According to Swiggy’s exchange filing, the tax claim is linked to alleged violations, including denial of cancellation charges given to merchants under Section 37 of the Income Tax Act, 1961, and exclusion of interest received on an income tax refund from taxable income.
Swiggy, however, maintains that it has a strong case and is taking necessary legal steps to challenge the order through review and appeal. The company reassured that the notice will not have any major adverse impact on its financial health or operations.
Founded in 2014, Swiggy has grown into one of India’s leading online food ordering and delivery platforms, gaining immense popularity in urban areas. However, the company, which was listed on the stock exchange on November 13, 2024, has faced significant market pressure. In the past three months alone, its stock has declined by 38.88%, reflecting investor concerns since its market debut.
