IndiGo receives penalty order of ₹944 Crore from IT dept

30 Mar 2025 , 09:33 PM

InterGlobe Aviation Limited, the parent company of IndiGo, has announced that it has received a penalty order from the Income Tax Department. The order is received for Assessment Year 2021-22.

The penalty, aggregating to ₹944.20 Crore, has been levied under section 270A of the Income Tax Act, 1961, stated the company in its filing with the exchanges.

The company informed that the order has been passed on the basis of an erroneous understanding that the company has filed an appeal before the Commissioner of Income.

Tax (Appeals) [“CIT(A)”] against the Assessment order under Section 143(3) has been put aside.

IndiGo stated that the Income Tax Authority wrongly understood that the appeal against the Assessment order under section 143(3) has been set aside. Whereas, the appeal is still active and pending adjudication.

The airline claims that the penalty order will not have a significant impact on its financials, operations, or other activities. The company stated that it will resort to all legal avenues to challenge this order.

The aviation business reported an 18% year-on-year decline in its Q3 net profit at ₹2,449 Crore. The company logged a loss of ₹988 Crore in the previous corresponding quarter.

The company’s revenue from operations registered a growth of 14% on a year-on-year basis to ₹22,111 Crore as compared to ₹19,452 Crore in the same quarter of previous year.

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