With the Earnings Tax Division imposing a penalty of Rs 944.20 crore on IndiGo, India’s largest airline has termed the order “misguided” and vowed to problem it legally.
The airline’s guardian firm, InterGlobe Aviation, acquired the order on Saturday.
In a regulatory submitting on Sunday, IndiGo acknowledged that the penalty pertains to the evaluation yr 2021-22.
The corporate strongly believes that the order isn’t in accordance with the regulation and has termed it “misguided and frivolous.”
“The order has been handed on the premise of an misguided understanding that enchantment filed by the corporate earlier than the Commissioner of Earnings Tax (Appeals) (CIT(A)) towards the evaluation order beneath Part 143(3) has been dismissed, whereas the identical remains to be alive and pending adjudication,” the airline stated in its submitting.
IndiGo has assured that it’ll pursue authorized cures to contest the penalty. Regardless of the hefty high-quality, IndiGo has clarified that the order is not going to have any vital affect on its financials, operations, or total enterprise actions.
“The stated order doesn’t have any vital affect on financials, operations or different actions of the corporate,” it added.
The penalty comes at a time when IndiGo is already navigating monetary challenges. The airline lately reported an 18.6 per cent decline in its consolidated web revenue for the third quarter of FY25, with earnings falling to Rs 2,448.8 crore from Rs 2,998.1 crore a yr in the past.
Rising operational prices, which surged by 20 per cent to Rs 20,466 crore, performed a significant position within the dip in profitability.
Nevertheless, IndiGo stays a dominant participant within the Indian aviation sector. In line with the Directorate Normal of Civil Aviation (DGCA), home air passenger site visitors grew by 6.12 per cent in 2024, reaching 16.13 crore passengers, and IndiGo continues to carry the biggest market share at 64.4 per cent, far forward of Air India’s 26.4 per cent.
