IndiGo slapped with Rs 944 crore penalty by income tax department; airline vows to challenge in court

New Delhi: Interglobe aviationA fine of Rs 944.20 crore has been issued by the Income Tax Department for evaluating the evaluation of Indigo, the original company of Indigo. However, the airline has rejected the order, called it “wrong and trivial”, and vow to challenge it through legal means.
Indigo to challenge tax order
The penalty order was received on Saturday, August 24 and IndiGo revealed development in a regulatory filing on Sunday. According to the airline, the evaluation unit of the Income Tax Authority passed the order under Section 143 (3) of the Income Tax Act, which relates to the assessment of the investigation. However, IndiGo says this order is based on a misunderstanding.
“The order has been passed on an incorrect understanding that the appeal filed against the evaluation order under Section 143 (3) by the Income Tax Commissioner (Appeal) (CIT (A)) has been rejected by the company, while the same is still alive and the pending addition,” Indigo said in his filing.
Legal action in pipeline
IndiGo has reiterated that it will combat the order and carry forward all available legal measures. The airline said in an official statement released on Sunday evening, “The company strongly believes that the order passed by the Income Tax Authority is not according to the law and is wrong and trivial. The company will contest elections in the same way and take appropriate legal measures against the order.”
No immediate effect on operation
Despite the significant punishment amount, IndiGo assured the stakeholders that the order does not pose an immediate threat to its business. The airline said, “The order has no significant impact on financial, operation or other activities of the company.”
Background and industry implications
India’s largest airline Indigo has been a major force in the aviation sector due to market share. However, issues of taxation and compliance have often placed airlines under investigation. Experts believe that such tax disputes are not uncommon in the industry, and companies often challenge these assessments through the appellate mechanisms.
Financial analysts suggest that when the fine is large, IndiGo’s strong balance sheet should cushion any immediate financial stress. A senior tax advisor said, “IndiGo is in a solid financial position, and while it is a large amount, the company’s order is a standard response in such cases.”