Info Edge (India) Limited has disclosed the receipt of an Assessment Order and a related Tax Demand Notice totaling ₹3.64 crore from the Income Tax Department for Assessment Year 2024-25. The demand primarily stems from the disallowance of Employee Stock Ownership Plan (ESOP) expenses claimed by the company. Management is currently reviewing the order, which is appealable, and confirms that there is no material impact on current financials or operations.
Disclosure of Tax Assessment Order
Info Edge (India) Limited has formally informed stock exchanges regarding a Notice of Demand received on March 20, 2026, pertaining to an Assessment Order issued by the Income Tax Department for the Assessment Year 2024-25.
Details of the Tax Demand
The authority involved is the Assessment Unit, Income Tax Department. The primary issue leading to the demand is the disallowance of ESOP expenses claimed by the Company. This results in a Tax Demand of Rs. 3,64,63,140/- under Section 143(3) of the Income Tax Act, 1961.
Historical Context on Disallowances
The document notes that similar disallowances concerning ESOP expenses for Assessment Years 2016-17, 2022-23, and 2023-24 are currently pending before the Commissioner of Income Tax appeal. Furthermore, for older years (since 2007-08), where similar disallowances were initially made, the Tribunal ruled in favor of the Company, although the Income Tax department has since appealed these favorable decisions to the Hon’ble High Court of Delhi.
Company Assessment and Next Steps
Regarding the immediate order for AY 2024-25, the Company has confirmed that the order is appealable. Management is currently reviewing the Order and evaluating the next steps in the matter.
Impact Assessment
Crucially, the Company declares that there is no material impact on the financials, operations, or other activities related to this specific order for the current financial year.
Source: BSE
