- IndiGo fined Rs 944.20 crore, calls it “erroneous.”
- Plans legal challenge against the tax order.
- Assures no impact on business or finances.
IndiGo’s parent company, InterGlobe Aviation, has been fined Rs 944.20 crore by the Income Tax Department for the financial year 2021-22. However, the airline has rejected the order, calling it “erroneous and frivolous.”
The penalty order was issued on August 24, and IndiGo informed about it in a regulatory filing on August 25. The tax authority passed the order under Section 143(3) of the Income Tax Act, which deals with scrutiny assessments.
IndiGo claims the order is based on a misunderstanding. It stated that the appeal against the tax assessment is still pending before the Commissioner of Income Tax (Appeals) and has not been dismissed, as assumed by the tax department.
The airline has vowed to fight the penalty through legal means. It said that the order is not in line with the law, and it will pursue all available legal remedies.
Despite the large penalty, IndiGo assured that its operations and financial stability will not be affected. Experts believe tax disputes like this are common, and the airline’s strong financial position should help it handle the issue.
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