NewsFirstCry Receives Major Relief as Income Tax Demand Reduced from Rs. 31.36 Crore to Rs. 38.37 LakhFirstCry Receives Major Relief as Income Tax Demand Reduced from Rs. 31.36 Crore to Rs. 38.37 Lakh
Brainbees Solutions Limited (FirstCry) has received major relief from the Income Tax Department with a rectification order reducing its tax demand for AY 2022-23 from Rs. 31,36,30,330/- to Rs. 38,37,210/-, marking a substantial reduction of Rs. 30,97,93,120/-. The company's total income for AY 2022-23 has been recomputed to Rs. 52,54,110/- following verification by the Assistant Commissioner of Income Tax, Central Circle 1(1), Pune. Despite this relief, FirstCry plans to file an appeal before the Income Tax Appellate Tribunal while maintaining its commitment to high standards of corporate governance and tax compliance.
*this image is generated using AI for illustrative purposes only.
Brainbees Solutions (FirstCry) has received substantial relief from the Income Tax Department following a rectification order that dramatically reduced its tax demand for Assessment Year 2022-23. The company informed stock exchanges on March 24, 2026, about this significant development that brings down its tax liability from over Rs. 31 crore to less than Rs. 39 lakh.
Major Reduction in Tax Demand
The Assistant Commissioner of Income Tax, Central Circle 1(1), Pune issued a rectification order following an application made by the company and subsequent verification of case records. This rectification has resulted in a substantial financial relief for the e-commerce major.
| Parameter: | Original Demand | Revised Demand | Reduction |
|---|---|---|---|
| Tax Demand Amount: | Rs. 31,36,30,330/- | Rs. 38,37,210/- | Rs. 30,97,93,120/- |
| Total Income (Recomputed): | - | Rs. 52,54,110/- | - |
| Assessment Year: | 2022-23 | 2022-23 | - |
Background of the Assessment
The original assessment order was issued on January 30, 2026, which included an addition of Rs. 93,57,99,520/- to the company's total income for AY 2022-23. FirstCry had previously informed the exchanges about this development through an intimation dated January 31, 2026. The company's proactive approach in seeking rectification through proper channels has now yielded positive results.
Company's Response and Future Course
Despite receiving this significant relief, FirstCry has indicated its intention to file an appeal before the Income Tax Appellate Tribunal (ITAT) in due course. The company emphasized its commitment to maintaining high standards of integrity, corporate governance, and compliance across all operational aspects, including prompt tax payments.
Regulatory Compliance
The intimation was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Mandar Joshi signed the communication, ensuring proper regulatory disclosure to both NSE and BSE.
This development represents a significant positive outcome for FirstCry, substantially reducing its immediate tax liability while the company continues to pursue further legal remedies through the appellate process.
Historical Stock Returns for Firstcry (Brainbees Solutions)
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.29% | +5.61% | +5.73% | -41.81% | -40.26% | -66.89% |
How might this substantial tax relief impact FirstCry's cash flow and investment plans for expansion in the competitive e-commerce market?
What are the potential outcomes if FirstCry's appeal to the Income Tax Appellate Tribunal is successful, and how could it further reduce their tax liability?
Could this rectification order set a precedent for other e-commerce companies facing similar tax disputes with the Income Tax Department?
17
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
