IndiGo vows to contest ₹944 cr tax penalty, calls I-T dept’s order ‘erroneous’
IndiGo vowed to challenge the Income Tax Department’s ₹944.20 crore penalty order and stated that it would pursue appropriate legal remedies.
IndiGo on Sunday criticised the Income Tax Department’s ₹944.20 crore penalty order as “erroneous” after its parent company, InterGlobe Aviation, received the order on Saturday. The airline vowed to challenge the decision and said that it would seek appropriate legal remedies, news agency PTI reported citing the airline's statement.
IndiGo stated that order imposed was not in accordance with the law.
“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,” an IndiGo spokesperson said.
‘Not in accordance with law’
The company emphasised that it will challenge the order and pursue appropriate legal remedies. “The order does not have any significant impact on financials, operations, or other activities of the company,” the airline stated in a regulatory filin.
As India’s largest airline by market share, IndiGo has played a crucial role in the aviation sector. However, airlines frequently face taxation and compliance challenges, leading to scrutiny.
Experts note that tax disputes are a recurring issue in the industry, with companies often challenging assessments through appellate processes.
Financial analysts, according to The Times of India, suggest that while the penalty amount is substantial, IndiGo’s strong financial position should help mitigate any immediate strain.
“IndiGo is in a solid financial position, and while this is a large amount, the company’s decision to contest the order is a standard response in such cases,” a senior tax consultant was quoted as saying by The TOI.
