Meesho Shares Decline 10% as Company Receives Rs 1,500-Crore Income Tax Demand Notice

Meesho Receives Rs 1,500 Crore Income Tax Demand Notice

Meesho, an e-commerce firm, has received an income tax demand notice of around Rs 1,500 crore, including interest, from the Income Tax Department. The notice was received on March 6, 2024, for assessment year 2023-24.

The Assessment Unit of Income Tax Department has raised a tax demand aggregating to Rs 14,99,73,82,840, including applicable interest. The demand order is based on certain additions and adjustments to the income reported by the company.

Meesho has stated that it does not concur with the observations and adjustments made in the Assessment Order and is taking necessary steps to protect its interest. The company believes it has adequate legal and factual grounds to contest the demand.

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The company's shares on BSE were trading 10% lower at Rs 143.34 apiece on March 9. Meesho reported a widening of loss to Rs 490.6 crore for the third quarter ended December 2025, mainly due to a significant jump in expenses during the festive season.

Meesho's expenses increased by about 44% during the quarter, especially in the category of "other expense", which has been a significant portion of the total spending across the reported period. The company posted expenses of close to Rs 4,071 crore during the quarter, out of which "other expenses" stood at Rs 3,821.3 crore, or about 94% of the total during the reported quarter.

Meesho posted a 31% increase in revenue from operations to Rs 3,517.5 crore during the quarter from Rs 2,678.64 crore in the December 2024 quarter. The company had previously disclosed a similar demand order for assessment year 2022-23, which it is currently contesting in the High Court of Karnataka.