Le Travenues Technology, operating as ixigo, has secured partial relief in a tax appeal for the 2022-23 assessment year. The National Faceless Appeal Centre reduced original tax additions by ₹29.53 crore, leaving a sustained amount of ₹16.72 crore. The company plans to challenge the remaining liability before the ITAT.
Le Travenues Technology Receives Partial Tax Relief for AY 2022-23
Original Additions: ₹46.25 crore; Relief Granted: ₹29.53 crore.
Reader Takeaway: Partial tax relief eases financial pressure, but lingering litigation for the remaining ₹16.72 crore requires investor caution.
What just happened
Le Travenues Technology Ltd, the parent company of the travel booking platform ixigo, has received a favorable order from the National Faceless Appeal Centre (NFAC) regarding the 2022-23 assessment year. The order addresses the company's appeal against a March 2024 assessment that had initially proposed tax additions and disallowances of ₹46.25 crore.
Why this matters
The NFAC order grants the company relief of ₹29.53 crore, significantly lowering the potential tax impact. Previously, authorities had raised a tax demand of ₹19.29 crore based on the original assessments. Following this development, the company anticipates a substantial reduction in the final tax liability, though the exact figure remains subject to calculations by the Assessing Officer.
What happens now
Despite the relief, ₹16.72 crore in additions has been sustained by the tax authorities. Le Travenues Technology maintains that it has a strong case on the merits of the matter and plans to challenge this remaining portion by filing an appeal with the Income Tax Appellate Tribunal (ITAT).
What to track next
Investors should watch for the official revised tax demand notice once the Assessing Officer issues the final order giving effect to the NFAC's decision. Additionally, further updates regarding the company’s filings with the ITAT will be critical to determine the final resolution of this tax exposure.