IndiGo Slapped With Rs 944 Crore Tax Penalty, Calls It ‘Erroneous’

InterGlobe Aviation Ltd., the parent company of IndiGo, has received a penalty order of Rs 944.20 crore from tax authorities under Section 270A of the Income Tax Act. The penalty pertains to the assessment year 2021-22.

In a regulatory filing on Sunday, the company stated that the order was based on an erroneous understanding that its appeal before the Commissioner of Income Tax against an earlier assessment order had been dismissed. However, the company clarified that the appeal is still pending adjudication.

InterGlobe Aviation said it believes the penalty order is "erroneous and frivolous" and intends to challenge it through appropriate legal remedies. The company further stated that the order does not have a significant impact on its financials, operations, or other activities.

Meanwhile, IndiGo recently made headlines after renowned cricket commentator Harsha Bhogle took to social media platform X to criticise the airline’s services, accusing it of prioritising itself over passengers.

"One day I am going to invite people from @IndiGo6E home for dinner and ask them to wait outside the door till the table is laid and the food is cooked. #Rude. Always #IndigoFirstPassengerLast," Bhogle posted.

In response, IndiGo clarified that the delay was due to its team assisting wheelchair users in boarding the flight.

"Remote bay boarding can sometimes take a little longer due to ongoing vehicular and aircraft movement on the tarmac. Thank you for your support and we hope you had a pleasant flight! Looking forward to serving you again soon," the airline replied.