IndiGo contests a Rs 944.20 crore penalty imposed by the Income Tax Department for the 2021-22 assessment year
During the assessment year 2021-22, InterGlobe Aviation received a Rs 944.20 crore penalty from the Income Tax Department. After receiving the penalty order on Saturday, the airline opposed the “erroneous and frivolous” decision. In a filing to regulators, the airline clarified that the Income Tax Authority applied their misunderstanding to an ongoing tax appeal.
IndiGo Disputes the Penalty
The tax authorities applied penalties because they misunderstood the facts, yet IndiGo remains clear that its appeal stands pending the Commissioner of Income Tax (Appeals) decision. The tax authorities missed that IndiGo awaited a decision from the Commissioner of Income Tax (Appeals) regarding their appeal. The airline maintained its appeal before the Commissioner of Income Tax (Appeals) was still busy despite incorrect impressions from tax authorities. The airline will handle this unlawful order through legal means while asserting that it fails to follow established legal requirements.
According to statements from the company, the imposed penalty would not affect financial aspects, operational capabilities, or upcoming activities. IndiGo plans to solve this issue by utilising proper legal procedures. The airline is comfortable with the ongoing appeal procedure and pointed out that the penalty relied on incorrect foundations.
Legal Challenges Expected
IndiGo has decided to battle the imposed penalty through legal procedures. The airline is proceeding toward legal means to resolve this situation according to its previous statements. The company plans to take its case before the court because IndiGo believes the tax authorities applied incorrect information in their decision-making.
The company plans to pursue a penalty review through legal representation because its appeal process remains unresolved. The airline uses its statement to illustrate its commitment to protect business interests and prevent its shareholders from bearing additional assessment expenses.
Impact on IndiGo’s Operations
The organisation guarantees customers that this penalty will not impact their business operations. The airline has stated clearly that the penalty does not create any difficulties for its financial stability. IndiGo maintains its dedication to its primary business sectors and customer support structure while developing more options within the aviation market.
The legal process expected to address this matter will resolve the current tax authority dispute while IndiGo maintains its dedication to solving misunderstandings. Because the airline operates normally, stakeholders should monitor legal updates concerning this issue.
