Flipkart loses plea, I-T panel refuses to stay Rs 1.1 billion tax demand

The income tax panel has asked Flipkart to deposit Rs 550 million and Rs 550 million as bank guarantees by February 28

In what could have an implication for the largest e-commerce landscape in India, the Income Tax Appellate Tribunal (ITAT) has refused to stay demand of Rs 1.1 billion on Flipkart after the e-commerce major was asked to reclassify the discounts and marketing spend as capital expenditure.

The Bengaluru-based income tax panel has asked Flipkart to deposit Rs 550 million and Rs 550 million as bank guarantees by February 28.

According to revenue authorities, India's largest retailing platform generated a profit of Rs 4.08 billion in the financial year 2015-16 when the company originally had a loss of Rs 7.96 billion.