Synopsis
Paisabazaar has received an order disallowing expenses worth Rs 145.91 crore for FY23 and FY22. The Commissioner of Income Tax (Appeals) upheld an earlier order. This increases the company's taxable income. The matter is under appeal and has no immediate financial impact. The appellate authority will verify the adjustment of past losses against current income.The issue stems from earlier assessment and reassessment orders issued by the income tax department in March and April 2025, rejecting these expenses.
The latest order upholds the assessing officer’s (AO’s) rejection of total expenses worth Rs 145.91 crore for the two financial years, which increases the company’s taxable income. The CIT(A) is the first appellate authority under the Income Tax Act, and serves as a quasi-judicial body that reviews disputes arising from orders passed by the AO.
The company stated that the order has no immediate financial impact as the matter remains under appeal and subject to further adjudication.
The appellate authority also said that Paisabazaar’s adjustment of past losses against current income may be valid, and asked the AO to verify it. If permitted, the company will be allowed to reduce its taxable income accordingly.
PB Fintech, which operates Paisabazaar and insurance platform Policybazaar, reported a consolidated net profit of Rs 189 crore in Q3FY26, up 164% from Rs 71.5 crore in the year-ago quarter. Its operating revenue grew 37% to Rs 1,771 crore, driven by improving margins, which expanded to 11% from 6% a year ago, alongside strong growth in insurance premium collections and a recovery in its credit business.
The company’s total expenses increased to Rs 1,655.4 crore during the quarter, largely due to higher employee and marketing costs. The company will report its fourth quarter results on 6 May.
