E-commerce platform Meesho has received an income tax demand notice of nearly ₹1,500 crore for the assessment year 2023–24, according to a recent company filing. The company said it plans to legally challenge the order and is currently evaluating the assessment.
The notice, issued by the Income Tax Department on March 6, raises a total tax demand of ₹1,499.73 crore, including applicable interest. According to the filing, the demand stems from certain additions and adjustments made by the tax authorities to the income reported by the company.
Responding to the notice, Meesho stated that it does not agree with the observations and adjustments mentioned in the assessment order. The company believes it has sufficient legal and factual grounds to contest the demand and is taking necessary steps to safeguard its interests.
This is not the first such notice received by the firm. Meesho said that a similar demand was issued for the assessment year 2022–23. In that case, the Karnataka High Court granted an interim stay on April 17, 2025, and the matter is currently pending before the court.
Despite the latest notice, the company clarified that the assessment order and demand notice are not expected to have any major adverse impact on its financial position, operations, or other business activities.
Meanwhile, Meesho’s financial results for the third quarter ending December 2025 showed a sharp rise in losses. The company reported a loss of ₹490.6 crore during the quarter, compared with ₹37.43 crore in the same period a year earlier. The widening loss was largely attributed to a significant increase in spending during the festive season.
The company’s total expenses rose by around 44 per cent year-on-year to nearly ₹4,071 crore. A major portion of this expenditure fell under “other expenses”, which accounted for ₹3,821.3 crore, or roughly 94 percent of the total spending during the quarter.
Despite rising costs, Meesho recorded strong growth in revenue. Revenue from operations increased by 31 per cent to ₹3,517.5 crore in the December 2025 quarter, compared with ₹2,678.64 crore in the corresponding period of 2024.
The development comes at a time when the company continues to expand its operations in India’s competitive e-commerce market while also dealing with regulatory and financial challenges.
.
