InterGlobe Aviation, the parent company of Indian budget-carrier IndiGo, has been hit with a penalty of 9.4bn Indian rupees ($110.3 million), by India's Income Tax Authority.
The penalty was related to the company under-reporting or misreporting of income while filing tax returns during the assessment year 2021-22.
IndiGo stated that the Income Tax Authority has passed this order on the basis of an “erroneous understanding” and that an appeal filed against the order with the Commissioner of Income Tax (Appeals) had been dismissed. The company stated that the appeal is still active and pending adjudication.
IndiGo described this order as not being in accordance with law, noting it as “erroneous and frivolous”.
“Accordingly, the company shall take appropriate legal remedies against the aforesaid order," read IndiGo in a regulatory filing on March 30. “Therefore, the said order does not any have significant impact on financials, operations or other activities of the company.”