The Commissioner of Income Tax-Appeals has confirmed tax demand totalling over ₹1,666 crore on IndiGo, the airline said in a stock exchange filing on Wednesday.

InterGlobe Aviation, the company which operates IndiGo, said it will contest the orders and take appropriate legal remedies. 

The tax demand pertains to two assessment years — 2016-17 and 2017-18. A demand of ₹739.6 crore (for 2016-17) and ₹927 crore (for 2017-18) was raised by the assessing officer against which the IndiGo filed an appeal.

The Commissioner of Income Tax-Appeals has now passed respective orders wherein the revision to the taxable income on account of tax treatment of certain incentives received by the company from aircraft and engine manufacturers and disallowance of certain expenses has been confirmed without granting an opportunity of personal hearing and adjudicating the matter on merits, the airline said.

“The company believes, based on legal advice from counsels, that the views taken by authority are not sustainable,” it added.