InterGlobe Aviation, the parent of the country's largest airline IndiGo, on Wednesday (November 22) said the company has received ₹1,666 crore order from the Commissioner of Income Tax Appeals.

Share Market Live

NSE

The orders, dated November 21, 2023, pertain to a demand of ₹740 crore for the assessment year 2016-17 and ₹927 crore for the assessment year 2017-18.

"A demand of ₹7,396.76 million (AY 2016-17) and ₹9,270.31 million (AY 2017-18) was raised by the Assessing officer, against which the Company had preferred appeal before CIT-Appeal," Indigo said in a regulatory filing at the exchange.

Also Read: Exclusive | Zomato, Swiggy receives GST demand notice

This demand is related to the tax treatment of certain incentives received by the company from manufacturers during the acquisition of aircraft and engines, along with the disallowance of certain expenses.

The Commissioner of Income Tax Appeals has passed orders confirming the revision to taxable income without granting an opportunity for a personal hearing and adjudicating the matter on merits, the airline said.

The company intends to contest these orders and pursue appropriate legal remedies. IndiGo, guided by legal advice from counsels, asserts that the views taken by the authority are not sustainable. It's important to note that the figures mentioned exclude interest and penalty.

Also Read: Fedbank Financial Services IPO opens: Should you bid for the ₹1,092 crore issue?

The airline remains committed to addressing the dispute through legal channels to ensure a fair and justified resolution.

Shares of Interglobe Aviation Ltd ended at ₹2,600.00, down by ₹20.50, or 0.78 percent on the BSE.