The Income Tax Department has imposed a penalty of Rs 944.20 crore on InterGlobe Aviation, the parent company of IndiGo, for the assessment year 2021-22. IndiGo, India’s largest airline, received the order on Saturday and has strongly contested the decision, calling it “erroneous and frivolous.”
IndiGo’s response to the order
In a regulatory filing on Sunday, IndiGo clarified that the penalty was based on a misunderstanding by the Income Tax Authority. The authority mistakenly believed that IndiGo’s appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] had been dismissed, whereas the appeal remains active and pending adjudication. IndiGo asserted that the order was not under the law and confirmed its intent to challenge the penalty through appropriate legal channels.
IndiGo has assured stakeholders that the penalty order will not have any significant impact on its financials, operations, or other activities. The airline remains committed to contesting the order and is exploring all legal remedies to address the situation.
““The order for said Penalty under Income Tax has been passed on the basis of an erroneous understanding that appeal filed by the Company before the Commissioner of Income Tax (Appeals) against the Assessment order under Section 143(3) has been dismissed, whereas the same is still alive and pending adjudication. The Company strongly believes that the order passed by Income Tax Authority is not in accordance with law and is erroneous. The Company will contest the same and shall take appropriate legal remedies against the order,” read the IndiGo spokesperson’s statement.