IndiGo gets Rs 944 crore tax penalty from I-T dept; airline to contest

InterGlobe Aviation Ltd (IndiGo's parent) said on Sunday that it received a Rs 944.20 crore fine from the Income Tax (I-T) department. "The Income Tax Authority has passed an order imposing a penalty of Rs 944.20 crore for the Assessment Year 2021-22. The order has been passed on the basis of an erroneous understanding that appeal filed by the Company before the Commissioner of Income Tax (Appeals) against the Assessment order under Section 143(3) has been dismissed, whereas the same is still alive and pending adjudication," the Gurugram-headquartered carrier stated in a BSE filing.

IndiGo claimed that the order is "erroneous and frivolous" in nature and will not have any significant impact on financials, operations or other activities.

"The company strongly believes that the order passed by Income Tax Authority is not in accordance with law and is erroneous and frivolous. Accordingly, the company will contest the same and shall take appropriate legal remedies against the aforesaid order. Therefore, the said order does not any have significant impact on financials, operations or other activities of the company," the airline also said.

On Friday, IndiGo shares settled 0.32 per cent lower at Rs 5,113. At this closing price, the scrip has climbed 11.36 per cent on a year-to-date (YTD) basis.

Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 71.22. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 32.53 against a price-to-book (P/B) value of 52.91. Earnings per share (EPS) stood at 157.19 with a return on equity (RoE) of 162.65. According to Trendlyne data, IndiGo has a one-year beta of 0.9, indicating low volatility.

As of December 2024, promoters held a 49.27 per cent stake in the airline.