GURUGRAM- InterGlobe Aviation Limited, the parent company of IndiGo Airlines (6E), faces a ₹944.20 crore penalty from the Income Tax Department for the assessment year 2021-22.
The company disclosed this development in a recent exchange filing, stating that the penalty was issued under Section 270A of the Income Tax Act.
Photo: Pieter ElbersIndiGo Tax Penalty
IndiGo claims the tax authorities based their decision on a misunderstanding, incorrectly assuming that the company’s appeal against a previous assessment order had been dismissed.
The airline emphasized that this appeal remains pending before the Commissioner of Income Tax (Appeals).
The carrier firmly rejected the penalty order, describing it as “erroneous and frivolous.” InterGlobe Aviation plans to contest the ruling through appropriate legal channels and has already begun preparations to challenge the order.
The company reassured its stakeholders that the tax penalty would not have a significant impact on its financial position, operational capabilities, or other business activities. IndiGo management stated they would pursue all available legal remedies to address what they consider an unfounded penalty.
Photo: Siddh Dhuri | MumbaiPlanesSimilar Fines and Notices
InterGlobe Aviation Limited, the parent company of IndiGo Airlines, reported on Friday, February 28, 2025, that the Assistant Commissioner of State Tax in Ahmedabad has imposed a penalty of ₹1,30,40,966 (Approx 1.3 Crore) on the airline. The penalty relates to the input tax credit claimed for the financial year 2020-21.
IndiGo stated in a regulatory filing to stock exchanges that the company believes it has correctly availed the input tax credit and has strong grounds for its case. The airline is currently evaluating legal options under applicable law, including filing an appeal with the appropriate appellate authority.
The company assured stakeholders that this penalty would not significantly impact its financial position, operations, or other business activities.
This marks the second penalty IndiGo has faced within a week. On Feb 26, 2025, the airline disclosed it received a fine of nearly ₹14 lakh for input tax credit matters in Uttar Pradesh for FY21. The company similarly stated it would pursue legal recourse in that case.
Additionally, GST authorities imposed penalties totaling ₹115.86 crores on IndiGo through an order passed on February 4, 2025.
Of this amount, ₹113.02 crore relates to services provided to offshore recipients, which tax authorities did not recognize as “export of services,” and denied input tax credit on certain services for FY18, FY19, and FY20. The remaining ₹2.84 crore penalty stems from the denial of input tax credit for the same three fiscal years.
IndiGo confirmed it is “actively engaging in contesting these orders before the appellate authority” and maintained that none of these penalties would materially impact the airline’s finances, operations, or other activities.
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