Info Edge (India) Limited has officially filed an appeal with the relevant tax authorities to contest a demand notice of Rs. 3,64,63,140 for the Assessment Year 2024-25. The dispute stems from the disallowance of specific tax deductions related to ESOP expenses. While the company maintains that this assessment will not have a material financial impact, it has initiated legal recourse to protect its position and address the tax department’s findings.
Dispute Details
The company has formally challenged an assessment order issued by the Income Tax Department for the assessment year 2024-25. The contested demand, totaling Rs. 3,64,63,140, follows an assessment under Section 143(3). The appeal was filed on April 2, 2026, before the Joint Commissioner (Appeals) at the National Faceless Appeal Centre, seeking a reversal of the department’s decision.
Background on Tax Disallowances
The core of the dispute relates to the treatment of ESOP-related expenses, which were disallowed by tax authorities in the current order. The company notes that similar disallowance disputes for previous assessment years are currently pending at various legal forums. Notably, the company has historically secured favorable rulings from the Income Tax Appellate Tribunal regarding these same categories of expenses for multiple years ranging from 2007-08 to 2021-22.
Financial Outlook
Despite the current demand, the company does not anticipate a material financial impact from this development. The decision to appeal was taken with caution to ensure that potential adverse outcomes do not set a precedent that could affect settled matters for previous years. The company remains confident in its legal position and will continue to pursue the matter through the appropriate appellate channels.
Source: BSE
