Income Tax imposes a penalty of Rs 944 crore on Indigo
Income Tax, Indigo Airlines: The country's largest airline Indigo has termed the penalty of Rs 944.20 crore imposed by the Income Tax Department as wrong and said that it will challenge this order legally.
The Income Tax Department has imposed a penalty of Rs 944.20 crore on the country's largest Indigo airline. The airline has described the notice issued by the Income Tax as erroneous. Apart from this, he has also said that he will legally challenge it. The company said that this decision of the Income Tax Department will not have any effect on the operations, finances, and other activities of the airline. The company believes that this decision is not legally sound. Also, Indigo termed this order as wrong.
This penalty has been imposed at a time when Indigo is already facing financial difficulties. Indigo's net profit declined by 18.6 percent in the third quarter of FY 2025. During this quarter, the revenue of the airline company dropped to Rs 2,448.8 crore from Rs 2,998.1 crore last year.
The airline said in a statement, "The Income Tax Department has issued an order imposing a penalty of Rs 944.20 crore for the year 2021-22. This order has been passed based on the wrong understanding that the appeal filed by the company against the assessment order under section 143 (3) before the Commissioner of Income Tax (Appeal) has been dismissed while that decision is pending.
Further, IndiGo refuted the claims, saying that this decision is erroneous and lacks legal merit. The airline has expressed its intention to challenge the order through appropriate law, asserting its faith in the judicial process.
