E-commerce Firm Plans to Contest Assessment Order for FY24
Meesho has received a tax demand of nearly ₹1,500 crore from the Income Tax Department of India for the assessment year 2023–24, according to the company’s regulatory filing with stock exchanges. The tax authority issued the assessment order under Section 143(3) of the Income-tax Act along with a demand notice under Section 156, raising a total demand of ₹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 financial year under review.
Company to Challenge Order Through Legal Channels
Meesho said it disagrees with the observations and adjustments outlined in the assessment order and is currently evaluating the matter. The company added that it believes it has sufficient legal and factual grounds to contest the demand and will pursue appropriate remedies to protect its interests.
The e-commerce marketplace also noted that a similar tax demand had been issued for the previous assessment year 2022–23. In that case, the Karnataka High Court granted an interim stay on the demand notice in April 2025, and the case remains pending.
Financial Performance and Market Position
Despite the tax dispute, Meesho stated that the latest demand is not expected to materially impact its financial position or operations. The company reported operating revenue of ₹3,517.5 crore in Q3 FY26, reflecting 31% year-on-year growth. However, its losses increased more than 13 times to ₹490 crore during the same period.
At the close of trading on Friday, Meesho’s shares were priced at ₹158.6, giving the company a market capitalisation of approximately ₹71,578 crore (around $7.9 billion).
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