IndiGo's parent company InterGlobe Aviation, on Wednesday said it will challenge tax demands worth over Rs 1,666 crore. The Commissioner of Income Tax-Appeals (CIT-Appeal) has passed orders related to tax demands for the assessment years 2016-17 and 2017-18.

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In a regulatory filing, the company said 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". The figures exclude interest and penalty.

The CIT appeal has passed the respective orders. As per the filing, the revision to the taxable income on account of tax treatment of certain incentives received by the company from manufacturers with the acquisition of the aircraft and engine and disallowance of certain expenses has been confirmed without granting an opportunity of personal hearing and adjudicating the matter on merits.

The company will contest the same and will take appropriate legal remedies, it said. Further, InterGlobe Aviation said it believes, based on legal advice from counsel, that the views taken by authority are not sustainable.

 

With input from PTI