Taxmen may move SC over KFA dues
The revenue department is likely to move the Supreme Court against tax dues amounting to Rs 329 crore owed by Kingfisher Airlines after the carrier got a stay last month against the tax authorities in the Karnataka High Court.business Updated: Oct 29, 2012 21:33 IST
The revenue department is likely to move the Supreme Court against tax dues amounting to Rs 329 crore owed by Kingfisher Airlines after the carrier got a stay last month against the tax authorities in the Karnataka High Court.
The Karnataka court had restrained tax authorities from attaching the airline's bank accounts.
KFA's tax dues with the income tax (I-T) and service tax departments are Rs 269 crore and Rs 60 crore respectively.
"In the special leave petition, the I-T and service tax departments will apprise the Supreme Court of the huge outstanding on KFA's part, which is due to the government and request to vacate the Karnataka High Court order," a Revenue department source said.
The Karnataka high court had on September 26 ordered the I-T department to refrain from further recovery proceedings against KFA.
According to the source, the decision to move the apex court was taken jointly by the Central Board of Direct Taxes and Central Board of Excise and Customs. "It has been decided that the Bangalore chief commissioner (I-T) should move the SLP proposal."
The airline is facing further problems with the Airport Authority of India asking it to vacate two hangers at Kolkata and Chennai airports that are occupied by KFA at present.