Swiggy Faces Income Tax Assessment Order worth over ₹158 crore

Swiggy Limited, one of India’s leading food delivery platforms, has recently come under the scrutiny of the Income Tax Department. The company received an assessment order for the financial year 2021-2022, resulting in an additional tax liability.

This development has raised questions regarding Swiggy’s tax practices and financial reporting. The company, however, remains confident in its position and plans to contest the order.

The Nature of the Tax Order and Allegations

Swiggy Limited, formerly known as Bundl Technologies Private Limited, recently received an assessment order from the Income Tax Department, Central Circle, Bangalore. This order pertains to the financial year April 2021 to March 2022, wherein an additional tax liability of ₹158.26 crore has been levied on the company.

The key issues highlighted by the tax authorities include the disallowance of cancellation charges paid to merchants under Section 37 of the Income-tax Act, 1961, and the omission of interest income on income tax refunds from taxable income.

The order, received on March 29, 2025, has raised concerns regarding the company’s tax practices. The authorities argue that the cancellation charges should not be treated as a deductible expense, which significantly impacts the company’s reported financials. Moreover, the failure to declare interest income has been considered a lapse in tax compliance.

Swiggy’s Response and Financial Implications

In response to the order, Swiggy has stated that it believes it has a strong case and intends to appeal against the assessment before the appropriate authority. The company has reassured stakeholders that this development does not pose a significant risk to its financial stability or operational activities.

Swiggy remains confident that the tax order will not have an adverse effect on its long-term business performance.

Despite this assertion, such tax disputes often lead to prolonged legal proceedings and potential financial strain. Investors and analysts will closely monitor the outcome of Swiggy’s appeal, as regulatory scrutiny on corporate taxation continues to intensify in India.

Swiggy Share Performance 

As of April 02 2025, at 9:30 AM, Swiggy share price was trading at ₹333.50, reflecting a surge of 0.48% from its previous closing price. Over the past month, it has surged by 2.21%.

Conclusion

The recent tax assessment order against Swiggy highlights key issues related to corporate tax compliance and financial reporting. While the company maintains confidence in its legal position, the ultimate resolution of the case will determine its impact on Swiggy’s financial health.

As regulatory oversight increases, businesses must navigate tax regulations diligently to avoid similar disputes in the future.

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