Shipwaves Online Limited received an order from the National Faceless Appeal Centre (NFAC) dismissing its appeal against the income tax assessment for Assessment Year 2024-25. The appellate authority upheld a total tax demand of ₹72.67 lakh, confirming additions to the company's taxable income.

The order, dated September 29, 2026, was passed under Section 250 of the Income-tax Act, 1961. The dispute arose from assessment proceedings under Section 143(3) read with Section 144B, where the assessing officer disallowed specific expenses and increased the company's total income significantly above the returned figures.

Dispute details and financial impact

The NFAC upheld two primary additions made by the assessing officer: a disallowance of gratuity expenses amounting to ₹23.87 lakh and a disallowance of depreciation on intangible assets worth ₹2.21 crore. These adjustments raised the company's assessed total income to ₹5.28 crore, compared to the returned income of ₹2.83 crore.

Penalty proceedings status

While the appellate authority confirmed the tax liability, it did not adjudicate on the initiation of penalty proceedings under Section 270A(9). The NFAC observed that the ground relating to penalty initiation was premature at this stage. Consequently, the final consequential tax liability, including applicable interest, will be determined in accordance with the provisions of the Income-tax Act, 1961.

What the numbers show

The disparity between the returned income of ₹2.83 crore and the assessed income of ₹5.28 crore highlights a significant divergence in accounting treatment, particularly regarding intangible asset depreciation. The disallowance of ₹2.21 crore in depreciation constitutes the majority of the added income, indicating that the company's aggressive amortization schedule for intangible assets was not accepted by the tax authorities.

Shipwaves Online Limited received a show cause notice from the Goods and Services Tax authorities regarding discrepancies for the financial year 2022-23. The proposed total liability amounts to ₹1.92 crore, comprising tax, interest, and tentative penalty.

The notice was issued by the Office of the Deputy Commissioner of State Tax, Mandvi-504, Nodal Division-03, Mumbai, on September 29, 2026. It was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of the dispute

The matter arises from GST audit proceedings conducted by the Department of Goods and Services Tax, Government of Maharashtra. The company received Form GST DRC-01 under Section 73 of the applicable GST laws.

The notice raises discrepancies relating to:

• Input Tax Credit
• Reverse Charge Mechanism liability
• Credit notes
• Taxability of other incomes

The company has been asked to explain why the proposed tax, interest, and penalty should not be demanded and recovered.

Financial implications

The proposed dues are subject to the outcome of adjudication proceedings. The penalty indicated is tentative.

What the numbers show

Interest constitutes approximately 36% of the total proposed liability, while tax accounts for roughly 58%. The tentative penalty represents about 6% of the total demand. This structure highlights that interest accumulation over the period since FY23 is a significant portion of the claimed amount, separate from the base tax discrepancy.