IndiGo slapped with Rs 740 crore income tax notice; airline to contest order | Know why | Companies News
IndiGo airline plans to contest a tax order worth over Rs 1,600 crore. (Photo credit: X/ @IndiGo6E)
New Delhi: Interglobe Aviation, the parent company of IndiGo, plans to contest an order by the Commissioner of Income Tax — Appeals seeking Rs 740 crore recovery for assessment year (AY)2016-17 and Rs 927 crore recovery for AY2017-18. The airline alleged that it was not granted an opportunity for a personal hearing by the commissioner. The matter was not adjudicated on merit, CNBCTV18 reported, citing the airline.
Also read: Passengers claim IndiGo refused to fly with just 6 people on board, left them stranded overnight
Why was Indigo slapped with steep tax notice?
The income tax order is related to incentives received by the airline from jet makers. The incentives are related to the acquisition of jets and engines, Bloomberg reported. IndiGo was co-founded by Rahul Bhatia and Rakesh Gangwal. Interglobe Aviation owns a majority stake in the airline. The budget carrier was founded in 2006.
Also read: Drunk man arrested for misbehaving with air hostess onboard Jaipur-Bengaluru IndiGo flight
IndiGo aircraft order
IndiGo placed an order for 500 jets with French jet maker Airbus. It placed an additional order for 10 A320 neo-family jets with Airbus. As of date, the airline has nearly 1,000 jets pending in its order pipeline. The order was part of the airline’s attempts to expand operations with competition rising from Tata Group-owned rivals Air India and Air India Express.
