InterGlobe Aviation Limited, the parent company of IndiGo Airlines (6E), is being penalized ₹944.20 crore by the Income Tax Department for the assessment year 2021-22. The firm reported this news through a recent filing in exchange where they notified of having received this fine under Section 270A of the Income Tax Act.
IndiGo has mentioned that the order for a penalty under income tax would not impact its financials, operations, and activities substantially. The company will challenge the order and is investigating all available legal recourse to mitigate the situation. The order has been issued due to a misinterpretation of the fact that the company's appeal against the assessment order issued under Section 143(3) was rejected.
IndiGo stood firm that the order was not legal and reiterated its intention to appeal the penalty through legal channels. IndiGo is of the view that the order is not according to law and is incorrect. The airline will appeal the order and pursue proper legal remedies.
In a filing with the regulators on Sunday, IndiGo made it clear that the penalty was on a misconception by the Income Tax Authority. The authority had assumed that IndiGo's appeal to the Commissioner of Income Tax (Appeals) had been rejected, when in fact the appeal is pending and active.
Additionally, GST authorities imposed penalties totaling ₹115.86 crores on IndiGo through an order passed on February 4, 2025. IndiGo confirmed it is "actively engaging in contesting these orders before the appellate authority" and maintained that none of these penalties would materially impact the airline's finances, operations, or other activities.
IndiGo, India's top airline, has been slapped with a hefty ₹944.2 crore income tax penalty for the assessment year 2021-22. The firm strongly objects to the penalty, calling it "erroneous and frivolous," as it is based on the Income Tax Department's misunderstanding of the status of IndiGo's appeal against the original assessment order, which is still pending.