Indigo, on 8 December, received a stay order from the ITAT (Income Tax Appellate Tribunal) in regard to a tax demand of Rs 1,666 crore for the assessment years 2016-17 and 2017-18.

In its regulatory filing, the company said that as per the order of ITAT, the stay will be effective for six months or until the appeal is decided, whichever is early.

The ITAT has also directed the Assessing Officer not to take any coercive measures against the company until the disposal of the appeal by the tribunal or six months from the date of the order, whichever is earlier. The case is expected to be heard by the appellate tribunal on 18 January.

On 22 November, the company, in its regulatory filing, said that the Commissioner of Income Tax-Appeals has confirmed tax demand totalling around Rs 1,66 crore on the company’s parent company, Interglobe Aviation.

The company said that the airline was not granted an opportunity for personal healing by the commissioner, and the matter was not adjudicated on merits.

The airline added, “The CIT-Appeal has now passed the respective orders, wherein the revision to the taxable income on account of the 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,”

This is the second time the Commissioner of Income Tax-Appeals has confirmed the tax demand for the low-cost airline.

Bank in 2015, the Commissioner of Income Tax informed the Central Board of Direct Taxes to look at treating discounts received by Indian airlines on the purchase of aircraft as commission while computing their taxable income.