InterGlobe Aviation Limited, the parent company of IndiGo Airlines, has been issued a penalty order of INR 944.20 crore by the Income Tax Department for the assessment year 2021-22. The penalty was imposed under Section 270A of the Income Tax Act. According to InterGlobe Aviation, the penalty is based on a misunderstanding by the tax authorities, who incorrectly assumed that the company's appeal against a prior assessment order had been dismissed. In reality, the appeal is still pending before the Commissioner of Income Tax (Appeals). The company claimed, "The order for said penalty under Income Tax has been passed on the basis of an erroneous understanding that the 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." InterGlobe Aviation also alleged that the penalty order is not in accordance with the law and is flawed.