The order, issued by the Deputy Commissioner of Income-tax, Central Circle – 1(1), Bangalore, alleges discrepancies related to cancellation charges paid to merchants and interest income on tax refunds.
Swiggy, in its regulatory filing with the BSE and NSE, stated that it strongly disagrees with the assessment and intends to challenge the order before the appropriate authority. The company maintains that it has a “strong case on merits” and is taking all necessary steps to protect its interests.
Swiggy also noted that it does not expect the tax order to significantly impact its financials or operations. Ahead of this developement, closing at ₹331.55 on the BSE, up 0.50%.
Other tax demands on corporates
Swiggy isn’t the only company facing scrutiny. Earlier today, Dabur India Ltd disclosed that it had received an income tax re-assessment order for ₹110.33 crore for FY 2017-18.
The company attributed part of the demand to an inadvertent error, stating that income already assessed for AY 2018-19 was factored in again. Additionally, ₹36.77 crore of the demand was raised without proper discussion, Dabur claimed.
Meanwhile, IT services firm Mphasis Ltd was served a ₹232.37 crore tax demand notice on March 31, linked to TDS on overseas payments.