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IT Dept cuts PhysicsWallah tax demand to Rs 193 Cr after rectification

EntrackrEntrackr · 4h ago
IT Dept cuts PhysicsWallah tax demand to Rs 193 Cr after rectification
Medial

Edtech unicorn PhysicsWallah has received partial relief in its ongoing tax dispute, with the Income Tax Department reducing the demand from Rs 263.34 crore to Rs 192.76 crore following a rectification application filed by the company. The company disclosed in an exchange filing that it had initially received a tax demand order under Section 143(3) of the Income-tax Act for the assessment year 2023–24. Subsequently, it moved a rectification application under Section 154, seeking a revision in the demand. Pursuant to this application, the tax authorities issued a revised order on April 13, 2026, lowering the total demand to Rs 192.76 crore. Despite the reduction, a significant portion of the tax liability continues to remain under dispute. To challenge the revised order, PhysicsWallah has filed an appeal before the Joint Commissioner (Appeals)/Commissioner of Income Tax (Appeals). The company noted that it believes it has strong legal and factual grounds to contest the remaining demand. The disclosure further stated that the ongoing tax proceedings are not expected to have any material impact on the company’s financial position, operations, or business activities. While the company has not detailed the exact nature of the dispute, such cases in the startup ecosystem often arise from differences in the classification of certain transactions, including whether they should be treated as capital or taxable income. PhysicsWallah shares gained 4.5% to Rs 105.33, pushing its market cap to Rs 30,104 crore ($3.2 billion).

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Meesho receives Rs 1,500 Cr tax demand for 2023-24

EntrackrEntrackr · 1m ago
Meesho receives Rs 1,500 Cr tax demand for 2023-24
Medial

Meesho receives Rs 1,500 Cr tax demand for 2023-24 E-commerce marketplace Meesho has received a tax demand of nearly Rs 1,500 crore from the Income Tax Department for the assessment year 2023-24, according to its regulatory filing with the stock exchanges. The Bengaluru-based company said the tax authority issued an assessment order under Section 143(3) of the Income-tax Act along with a demand notice under Section 156, which raised a total demand of Rs 1,499.7 crore, including applicable interest. The demand follows certain additions and adjustments made by the tax department to the income reported by the company for the assessment year. Meesho stated that it does not agree with the observations and adjustments made in the assessment order and is currently evaluating the matter. The company added that it believes it has adequate legal and factual grounds to contest the demand and is taking necessary steps to protect its interests. The company also said that the tax department issued a similar demand for the previous assessment year (2022–23). In that case, the Karnataka High Court granted an interim stay on the demand notice through an order dated April 17, 2025, and the case remains pending. According to the company, the latest assessment order and demand notice are not expected to have any major adverse impact on its financial position, operations, or other activities. Meesho reported a 31% year-on-year growth in operating revenue to Rs 3,517.5 crore in Q3 FY26, while its losses surged over 13X to Rs 490 crore during the same period. At the end of Friday’s trading session, Meesho shares closed at Rs 158.6, which gave the company a total market capitalization of Rs 71,578 crore (around $7.9 billion).

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