InterGlobe Aviation Ltd, the parent company of IndiGo, received a Rs 944.20 crore penalty from the Income Tax (I-T) department for the Assessment Year 2021-22.
The airline issued a regulatory filing on Sunday, stating that the penalty stemmed from an incorrect interpretation by the tax authorities. According to IndiGo, the department erroneously assumed that the company’s appeal before the Commissioner of Income Tax (Appeals) was dismissed, whereas the plea currently remains under adjudication.
The airline, headquartered in Gurugram, maintained that the penalty order is flawed and will be challenged through appropriate legal channels, reported Businees Today.
Company Dismisses Order as ‘Erroneous and Frivolous’
IndiGo strongly refuted the penalty, asserting that it will not impact its financial position or operations.
“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,” the airline stated in its filing.
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Stock Performance and Market Indicators
On Friday, IndiGo’s shares ended the trading session 0.32 per cent lower at Rs 5,113. Despite the minor dip, the stock gained 11.36 per cent on a year-to-date (YTD) basis. Technical indicators suggested that the stock is trading above key moving averages, including the 5-day, 10-day, 20-day, 50-day, and 200-day simple moving averages (SMAs). The stock’s 14-day relative strength index (RSI) stood at 71.22, indicating an overbought condition.
As of December 2024, IndiGo’s promoter holding remained steady at 49.27 per cent, reinforcing its position in the aviation industry. The airline now gears up for a legal battle against the tax penalty, maintaining confidence in its financial resilience and operational stability.
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