India, April 2 -- Foodtech major Swiggy has received a tax demand notice from the Income Tax (I-T) Department to pay an additional INR 158.25 Cr.

The company is alleged to have wrongly availed deductions for "cancellation charges paid to merchants", Swiggy said in an exchange filing.

"Following alleged Contraventions: 1. Cancellation charges paid to merchants is disallowed under Section 37 of the Income-tax Act 1961. 2. Interest income on income tax refund has not been offered to tax," the filing read.

Issued by the Central Circle of the I-T department's Bangalore office, the additional demand notice pertains to the period between April 2021 and March 2022.

Meanwhile, Swiggy said it is taking necessary steps to protect its interest. "...