IndiGo's parent company, InterGlobe Aviation, set to contest tax claims exceeding Rs 1,666 crore
23 Nov 2023
IndiGo’s parent company, InterGlobe Aviation, stated on Wednesday, 22 November 2023, that they would challenge tax demands worth over Rs 1,666 crore.
The Commissioner of Income Tax-Appeals (CIT-Appeals) has issued orders pertaining to tax demands for the assessment years 2016–17 and 2017–18.
In a regulatory filing, the company reported that the Assessing Officer had raised a demand of "INR 7,396.76 million (AY 2016-17) and INR 9,270.31 million (AY 2017-18)," against which the company had filed an appeal before the CIT-Appeals.
These numbers do not count interest and penalties.
The filing states that changes to the company's taxable income related to the tax treatment of incentives from acquiring the aircraft and engines and the denial of specific expenses were confirmed without a chance for a personal hearing or a thorough examination of the matter.
The company expressed its intention to challenge this decision and stated that it would pursue suitable legal remedies. Additionally, InterGlobe Aviation asserted its belief, guided by legal advice from counsel, that the positions taken by the authority are not legally defensible.