InterGlobe Aviation trades flat after income tax commissioner slaps tax worth Rs 1667 crore

InterGlobe Share Price: Shares of InterGlobe Aviation, the parent company of IndiGo, are trading flat in the morning session on Thursday (November 23) despite the aviation company receiving tax orders worth Rs 1667 crore from Income Tax Commissioner-Appeals.

The stock was trading flat at Rs 2,602.05 at 9:37 am on Thursday.

InterGlobe Aviation said on Wednesday that it had received orders from the Commissioner of Income Tax Appeals for the Assessment year 2016-17 and 2017-18. 

"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 company said.

"The CIT-Appeal has now passed the respective orders, wherein 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," added the copy.

The aviation company said that the order would impact its financial, operation or other activities, quantifiable in monetary terms to the extent possible.

It said it would contest the same and will take appropriate legal remedies.