New Delhi, March 30 -- InterGlobe Aviation, parent company of the country's largest airline, IndiGo, on Saturday, received a Rs.944.20 crore penalty order from the Income Tax Department, which the airline said was "erroneous and frivolous".

The Assessment Unit of the Income Tax Department (Income Tax Authority) passed an order imposing Rs.944.20 crore penalty for the assessment year 2021-22, according to IndiGo. Meanwhile, the Chennai Joint Commissioner slapped a fine of Rs.2.84 crore on the company. The department denied input tax credit due to the discrepancy for fiscal 2018 to fiscal 2020.

"The order has been passed on the basis of an erroneous understanding that appeal filed by the company before the Commissioner of Income Tax (Appe...