Indigo gets Interim stay on Income Tax demand of Rs. 1,666 crore:

Indigo gets Interim stay on Income Tax demand of Rs. 1,666 crore Indigo received a stay order from the Income Tax Appellate Tribunal (ITAT) on December 8 in relation to a tax demand of Rs. 1,666 crore for the assessment years 2016–17 and 2017–18. According to the company's regulatory filing, the stay will be in force for six months or until the appeal is resolved, whichever is earlier. The Income Tax Appellate Tribunal (ITAT) further directed the Assessing Officer not to take any coercive actions against the company until the tribunal rules on the appeal or six months from the date of the order, whichever is earlier. The appellate tribunal is expected to take up the case on January 18. In a regulatory filing on November 22, the company stated that the Commissioner of Income Tax-Appeals confirmed a tax demand amounting to approximately Rs. 1,666 crore on the company's parent company, Interglobe Aviation. According to the company, the commissioner did not provide the airline with an opportunity for personal healing, and the case was not decided on merit. The airine added, the CIT-Appeal has now issued the respective orders, which confirm the revision to taxable income due to the tax treatment of specific incentives received by the company from manufacturers in connection with the acquisition of the aircraft and engine, as well as the disapproval of certain expenses, without granting an opportunity for personal hearing and adjudicating the matter on merit. The Commissioner of Income Tax-Appeals has confirmed the low-cost airline's tax demand for the second time. In 2015, the Commissioner of Income Tax advised the Central Board of Direct Taxes (CBDT) to consider classifying discounts earned by Indian airlines on aircraft purchases as commissions when estimating their taxable income.