Delhivery Slapped with ₹1.36 Cr Tax Penalty: Company to Contest

India’s leading logistics company, Delhivery Limited, has received an income tax penalty order of ₹1.36 crore under Section 271(1)(c) of the Income Tax Act, 1961. The order, issued by the Assessing Officer, Central Circle 18, Delhi, is based on disallowed expenses for the financial year 2015–16.

What’s the Issue?

According to the order dated June 28, 2025, Delhivery allegedly claimed expenses of ₹3.95 crore that were not allowable under tax laws, leading to a penalty for concealment of income. The penalty imposed amounts to ₹1,36,95,768.

However, Delhivery has clearly stated its intent to challenge the order through appropriate legal channels, as permitted under Indian tax law.

Delhivery’s Response

In its official disclosure to the BSE and NSE, Delhivery emphasized that:

• The penalty relates to a past assessment year (2015–16)

• The matter will be challenged before the tax appellate authorities

• The issue has no material impact on its financial position, operations, or ongoing business activities

This public clarification aims to maintain transparency and reassure investors and stakeholders, especially as tax scrutiny tightens across various industries in India.

Why This Matters

In recent years, Indian tax authorities have stepped up compliance reviews, with historical tax assessments being re-examined under stricter norms. Delhivery’s case is one among many where companies are being asked to justify older expense claims.

While this incident doesn’t affect Delhivery’s operations, it highlights the increasing importance of clean accounting practices and well-documented deductions—especially for publicly listed companies.

About Delhivery

Founded in 2011 and headquartered in Gurugram, Delhivery is a major player in India’s logistics sector. The company provides:

• Express parcel delivery

• Freight and warehousing services

• Cross-border logistics

• Supply chain software solutions

Operating across 18,000+ pin codes, Delhivery supports both e-commerce brands and large businesses. The company went public in May 2022, and has consistently focused on strengthening its integrated logistics infrastructure across India.

Frequently Asked Questions (FAQs)

Q1. Why was Delhivery penalized by the Income Tax Department?
The penalty relates to disallowed expenses of around ₹3.95 crore for FY 2015–16, leading to an accusation of income concealment.

Q2. Under which section was the penalty imposed?
The penalty was imposed under Section 271(1)(c) of the Income Tax Act, which deals with concealment or inaccurate reporting of income.

Q3. Is this penalty going to affect Delhivery’s business operations?
No. Delhivery has stated that this penalty has no material impact on its current operations, financials, or business plans.

Q4. What steps is Delhivery taking now?
The company is planning to challenge the penalty order through legal means available under Indian tax laws.

Q5. Does this affect Delhivery’s credibility?
While penalties always raise concerns, Delhivery’s transparency and quick disclosure to regulators reflect responsible corporate behavior.

Conclusion

Tax scrutiny is becoming increasingly stringent in India, especially for large corporations. While Delhivery’s ₹1.36 crore penalty may seem significant, it’s more of a regulatory event than a financial blow. The company’s clear communication and intent to contest the order legally indicate a structured approach to compliance.

For stakeholders, this case is a reminder of the importance of robust documentation and tax governance—especially in a landscape where retrospective scrutiny is common. As Delhivery continues to expand its footprint, how it navigates this challenge will be closely watched by the business and investor communities alike.