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.

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