NewsZaggle Prepaid Ocean Services Receives Income Tax Demand Notice of Rs. 6.61 Crore for Assessment Year 2024-25Zaggle Prepaid Ocean Services Receives Income Tax Demand Notice of Rs. 6.61 Crore for Assessment Year 2024-25
Zaggle Prepaid Ocean Services Limited received an income tax demand notice of Rs. 6,60,51,200 for assessment year 2024-25 under Section 156 of the Income Tax Act 1961. The company plans to file an appeal against the demand, which stems from ad-hoc additions made during assessment. Management expects no material impact on operations and expresses confidence in achieving a favorable outcome through the appeals process.
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Zaggle prepaid ocean services Limited has received a significant income tax demand notice of Rs. 6,60,51,200 for the assessment year 2024-25, the company announced in a regulatory filing on March 26, 2026. The Notice of Demand was issued under Section 156 of the Income Tax Act 1961 by the Assessment Unit of the Income Tax Department.
Assessment Order Details
The income tax department passed an assessment order under Section 143(3) for Assessment Year 2024-25, making ad-hoc additions to the company's taxable income. The assessment order and subsequent demand notice were received by the company on March 25, 2026.
| Parameter | Details |
|---|---|
| Demanding Authority | Assessment Unit, Income Tax Department |
| Tax Demand Amount | Rs. 6,60,51,200 |
| Assessment Year | 2024-25 |
| Date of Receipt | March 25, 2026 |
| Legal Provision | Section 156 of Income Tax Act 1961 |
Company's Response Strategy
Zaggle Prepaid Ocean Services has outlined its plan to contest the demand notice through appropriate legal channels. The company will file an appeal against the demand notice before the Commissioner of Income Tax (Appeals) or the National Faceless Appeal Centre (NFAC).
Management has expressed confidence in their position, stating that based on their initial review and responses submitted, the company believes it has strong grounds to defend these positions and expects a favorable outcome.
Impact Assessment
The company has assessed that the demand notice will not materially impact its operations or financial activities. Key factors supporting this assessment include:
- The additions made by the income tax department are primarily ad-hoc in nature
- No material impact expected on financial, operational, or other business activities
- Strong grounds available for defense based on initial review
- Confidence in achieving a favorable resolution through the appeals process
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as per SEBI Master Circular requirements regarding the notice of demand and assessment order.
The announcement was signed by Hari Priya, Company Secretary and Compliance Officer, ensuring proper regulatory compliance and transparency with stakeholders regarding this significant tax matter.
How might this tax dispute affect Zaggle's upcoming quarterly earnings and investor confidence in the near term?
What specific business practices or accounting treatments likely triggered these ad-hoc additions by the tax department?
Could this tax assessment signal broader regulatory scrutiny of fintech companies' prepaid services business models?
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