Indigo Tax Penalty: The Income Tax Department has imposed a fine of ₹ 944.2 crore on Indigo’s original company Interglobe Aviation for the financial year 2021-22. However, the airline has described this order as ‘wrong and baseless’. On Friday (March 28), Indigo shares fell 0.54% to close at Rs 5,100.00.
According to IndiGo, this fine has been imposed by the evaluation unit of the Income Tax Department. At the same time, an additional fine of Rs 2.84 crore has been imposed by the Joint Commissioner of Chennai. The dispute is related to denying input tax credit (ITC) due to discrepancies in financial records from 2018 to 2020.
What did Indigo say on the fine?
In an official statement, IndiGo said, “We Income Tax Commissioner (Appeal) [सीआईटी (ए)] An application has been filed before. The Income Tax Department believes that the application has been rejected. This misunderstanding has been fined, while the appeal is still pending. ”
The airline emphasized that the order is ‘not in line with the law’ and it would challenge it further. The company also clarified that the fine would not have any ‘major impact’ on its financial performance, operations or other activities.
IndiGo is already involved in tax controversies.
This is not the first time IndiGo has faced tax-related fines. On 5 February, the Interglobe Aviation revealed that it received GST demand orders worth Rs 116 crore from tax officials in Delhi and Chennai. The Additional Commissioner of Delhi imposed a fine of ₹ 113 crore, which was mainly related to declaring exports of services abroad as taxable.
Additionally, on January 15, the Customs Department imposed a fine of more than Rs 25 lakh on IndiGo in a case related to jet fuel fee. In Ludhiana, the Joint Commissioner (Customs) imposed additional fees on the remaining aviation turbine fuel (ATF). In addition, on 6 January, the Principal Commissioner (Customs), Air Cargo Complex (Import) imposed a fine of Rs 2.17 crore on Indigo for denial of duty on imports.
However, despite repeated tax disputes, IndiGo says the fine will not have any physical effect on its financial, operations or business activities.
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The post IndiGo Tax Penalty: Tax penalty of Rs 944 crore on IndiGo, airline gave cleaning first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
