The Income Tax Department has slapped a penalty of Rs 944.20 crore on IndiGo, which said it will contest the order that is "erroneous and frivolous".

The order was received by InterGlobe Aviation, the parent of the country's largest airline IndiGo, on Saturday.

In a regulatory filing on Sunday, IndiGo said the Assessment Unit of the Income Tax Department (Income Tax Authority) has passed an order imposing Rs 944.20 crore penalty for 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) (CIT(A)) against the assessment order under Section 143(3) has been dismissed, whereas the same is still alive and pending adjudication," it said.

According to the filing, the company strongly believes that the order passed by Income Tax Authority is not in accordance with law and is erroneous and frivolous.

The company will contest the same and shall take appropriate legal remedies against the order, it added.

Further, IndiGo said the order does not have any significant impact on financials, operations or other activities of the company.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.