InterGlobe Aviation Ltd, the parent company of India’s leading budget airline IndiGo, finds itself embroiled in a legal dispute with the Income Tax Department.
On Sunday, the department issued a penalty order amounting to Rs 944.20 crore for the assessment year 2021-22, which the company termed as “erroneous and frivolous.”
The company plans to challenge the directive, asserting confidence in the judicial process. IndiGo clarified that the penalty would have no impact on its financials, operations, or activities. According to its statement, the fine stems from a misunderstanding by tax authorities regarding the status of an appeal before the Commissioner of Income Tax (Appeals).
Shares of IndiGo experienced a slight dip of 0.32% following the announcement. Despite this, the airline has demonstrated resilience in the stock market, with a year-to-date climb of 11.36%, buoyed by expansion plans and optimistic investor sentiment.
IndiGo remains steadfast in its commitment to contest the tax order, emphasizing its confidence in prevailing through appropriate legal remedies.
