I-T Dept. imposes ₹944 crore penalty on IndiGo; airline to contest order

The Income Tax Department has slapped a penalty of ₹944.20 crore on IndiGo. File
| Photo Credit: Reuters

The Income Tax Department has slapped a penalty of ₹944.20 crore on IndiGo, which said it will contest the order that is “erroneous and frivolous.”

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The order was received by InterGlobe Aviation, the parent of the country’s largest airline IndiGo, on Saturday.

In a regulatory filing on Sunday (March 30, 2025), IndiGo said the assessment unit of the Income Tax Department has passed an order imposing a ₹944.20 crore penalty for assessment year 2021-22.

“The order has been passed on the basis of an erroneous understanding that the appeal filed by the company before the Commissioner of Income Tax (Appeals) (CIT(A)) against the assessment order under Section 143(3) has been dismissed, whereas the same is still alive and pending adjudication,” it said.

According to the filing, the company strongly believes that the order passed by the Income Tax Authority is not in accordance with the law and is erroneous and frivolous.

The company will contest the same and shall take appropriate legal remedies against the order, it added.

Further, IndiGo said the order does not have any significant impact on financials, operations, or other activities of the company.