IndiGo Receives ₹944 Crore Tax Penalty Order from Income Tax Department

InterGlobe Aviation Limited, the parent company of IndiGo, has recently been issued a significant tax penalty by the Income Tax Department.

Background of the Tax Dispute

InterGlobe Aviation Limited, the parent company of IndiGo, has recently been subjected to a substantial tax penalty imposed by the Income Tax Department. The penalty, amounting to ₹944.20 crore, pertains to the assessment year 2021-22 and has been issued under Section 270A of the Income Tax Act, 1961. 

The basis for this penalty appears to be a misinterpretation by the tax authorities regarding the status of an appeal previously filed by the company. According to the notice, the Income Tax Department erroneously concluded that the appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] had been dismissed, whereas it remains active and pending adjudication.

Financial and Operational Implications

Despite the hefty penalty, InterGlobe Aviation has asserted that the order is erroneous and frivolous. The company has expressed confidence in its legal position and intends to challenge the order through appropriate legal channels. It has further clarified that the penalty does not significantly impact its financials, operations, or other business activities. Given the airline’s strong financial standing and legal strategy, the company is expected to address the issue without major disruptions to its operations.

InterGlobe Aviation Share Performance 

As of April 01, 2025, at 9:40 AM, InterGlobe Aviation share price was trading at ₹5,099.65 per share, reflecting a decline of 0.31%. The stock has shown an upside of 14.22% over the past month.

Conclusion

InterGlobe Aviation’s stance against the tax penalty underscores its confidence in legal recourse and financial stability. While the matter remains unresolved, the company has assured stakeholders that it does not foresee any major repercussions on its operations. As the legal process unfolds, further developments will determine the final outcome of this dispute.

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