InterGlobe Aviation Ltd, the parent company of budget airline IndiGo, on Sunday said it had received a fine of Rs 944.20 crore from the Income Tax Department for the Assessment Year 2021-22. However, the Gurugram-based company called the penalty order "erroneous and frivolous", and said it would pursue legal measures to challenge it.

The company said the order would not have any impact on the airline's operations, financials and its other activities.

"The Income Tax Authority has passed an order imposing a penalty of Rs 944.20 crore for the Assessment Year 2021-22. The order has been passed on the basis of an erroneous understanding that an appeal filed by the company before the Commissioner of Income Tax (Appeals) against the Assessment order under Section 143(3) has been dismissed, whereas the same is still alive and pending adjudication," the airline said in a statement.

Further, IndiGo refuted the claims, asserting that the decision is flawed and lacks legal merit. In response, the airline has stated its intent to challenge the order through appropriate legal channels, emphasizing its confidence in the judicial process.

"The company strongly believes that the order passed by the Income Tax Authority is not in accordance with law and is erroneous and frivolous. Accordingly, the company will contest the same and shall take appropriate legal remedies against the aforesaid order. Therefore, the said order does not have any significant impact on financials, operations or other activities of the company," it added.

After receiving the Income Tax order, IndiGo's shares settled 0.32 per cent lower at Rs 5,113. As of recent trading, the airline's stock has shown resilience and has climbed about 11.36 per cent on a year-to-date basis, India Today's sister publication, Business Today reported.

The stock had previously seen significant gains due to optimistic investor sentiment following the airline's announcement of expansion plans and future growth strategies.

Promoters held a 49.27 per cent stake in IndiGo as of December 2024.

Source: India Today