In a setback to Kingfisher Airlines (KFA) chairman Vijay Mallya, the Supreme Court on Tuesday refused to stay the operation of Karnataka High Court verdict that directed KFA to deposit more than Rs. 200 crore with the income tax department as tax deducted at source (TDS) from its employees'
A bench of Justice DK Jain and Justice Madan B Lokur asked the KFA counsel to deposit at least the principal amount. When told that the airline was not in a position to pay, the bench expressed its reluctance to hear the airline's appeal, but agreed to adjourn the matter by four weeks.
With no stay on the HC verdict, the I-T department can go ahead and recover the dues from the airlines in accordance with the law.
The airline had challenged the December 5, 2012 high court order arguing that the I-T demand was much higher than the actual amount due.