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.
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.
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.
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.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM