Particle.news
Download on the App Store
3 ARTICLES
·
4w ago

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.

In a regulatory filing, IndiGo stated that the Income Tax Authority’s assessment unit had imposed the penalty for the 2021-22 assessment year. (Representational Image)
Image

Overview

  • 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.