IndiGo Fights Rs 944.20 Crore Tax Penalty

The Income Tax Department imposed a Rs 944.20 crore penalty on IndiGo, which the airline deems erroneous and plans to contest. Receiving the order on Saturday, IndiGo, India's largest airline, insists it's based on a misunderstanding regarding their appeal's status, affirming it doesn't impact operations significantly.

The Income Tax Department has levied a substantial penalty of Rs 944.20 crore on IndiGo, the country's leading airline. This financial reprimand was handed to InterGlobe Aviation, IndiGo's parent company, underlining an alleged infraction during the assessment year 2021-22.

IndiGo has reportedly described the order as 'erroneous and frivolous', asserting its intent to contest the decision vigorously. The airline criticized the Income Tax Authority's understanding of the appeal status regarding the assessment order, clarifying that it remains pending and active before the Commissioner of Income Tax (Appeals).

In a detailed filing made on Sunday, IndiGo emphasized its belief in the legality of their actions and indicated that the imposed penalty would not significantly disrupt its financial health or operational stability. Subsequently, the airline plans to pursue a legal route to challenge the order.

(With inputs from agencies.)