InterGlobe Aviation, the parent company of India's largest airline, IndiGo, announced on Wednesday that it will contest tax charges of Rs 1,666 crore. The Commissioner of Income Tax-Appeals (CIT-Appeal) has issued tax demand orders for the fiscal years 2016-17 and 2017-18.
In a regulatory statement, the company stated that a demand of "INR 7,396.76 million (AY 2016-17) and INR 9,270.31 million (AY 2017-18) was raised by the Assessing officer, against which the Company had preferred appeal before CIT-Appeal".
While the CIT-Appeal issued the necessary directives, the amounts do not include interest or penalties. According to the filing, the tax treatment of certain incentives received by the company from manufacturers in connection with the acquisition of the aircraft and engine, as well as the disallowance of certain expenses, has been confirmed without providing an opportunity for a personal hearing and adjudicating the matter on merits.
According to the corporation, the claim will be challenged and appropriate legal action will be taken. Furthermore, InterGlobe Aviation indicated that it believes the authority's positions are untenable based on legal advice.
