IndiGo Challenges ₹944 Crore Tax Penalty, Citing Legal Misunderstanding

The airline asserts the penalty is based on an erroneous interpretation of a pending appeal and vows to pursue legal remedies.

The Income Tax Department imposed a ₹944.20 crore penalty on IndiGo's parent company, InterGlobe Aviation, for the assessment year 2021-22.
IndiGo disputes the penalty, claiming it is based on a misunderstanding that its appeal before the Commissioner of Income Tax (Appeals) has been dismissed, while it remains pending.
The airline announced it will contest the penalty through legal channels, terming the order 'erroneous and frivolous.'
IndiGo has clarified that the penalty will not have a significant impact on its financials, operations, or overall activities.
This development comes as IndiGo faces broader financial pressures, including an 18.6% decline in Q3 FY25 net profit, though it retains a dominant 64.4% market share in Indian aviation.