IndiGo Challenges Rs 944 Cr Tax Penalty

The Income Tax Department has imposed a Rs 944.20 crore penalty on IndiGo for the assessment year 2021-22. IndiGo plans to contest what it considers an erroneous and frivolous order. The company asserts that the ruling misinterprets the status of an ongoing appeal.

In a significant development, the Income Tax Department has levied a hefty penalty of Rs 944.20 crore on IndiGo, India's leading airline. The airline, however, has labeled the order as 'erroneous and frivolous' and intends to challenge it.

The penalty relates to the assessment year 2021-22 and was communicated to the airline on Saturday, according to a regulatory filing made by InterGlobe Aviation, IndiGo's parent company, on Sunday.

IndiGo argued that the ruling is based on a misunderstanding regarding a pending appeal with the Commissioner of Income Tax (Appeals). The company emphasized that the decision has no material impact on its finances or operational activities, and it plans to explore legal options.

(With inputs from agencies.)