Karnataka HC adds Rs 500 cr extra to Kingfisher Airlines' cup of woes

Jul 16 2014, 08:16 IST
Comments 0
SummaryKingfisher Airlines (KFA) on Tuesday suffered a further setback with the Karnataka High Court upholding a demand from the Income Tax Appellate Tribunal (ITAT) for over R500 crore. A division bench of the high court dismissed its appeals pertaining to the tax demand over three financial years, while upholding the assessing officer’s order.

Kingfisher Airlines (KFA) on Tuesday suffered a further setback with the Karnataka High Court upholding a demand from the Income Tax Appellate Tribunal (ITAT) for over R500 crore. A division bench of the high court dismissed its appeals pertaining to the tax demand over three financial years, while upholding the assessing officer’s order.

The assessing officer had passed an order in 2011 treating KFA as a defaulter for not remitting the tax deducted from various payments including employees’ salaries. The department had so far recovered about R144 crore from KFA out of a total claim of over R500 crore.

The HC ruling sets aside a two-year-old order of the ITAT which had referred the tax demand for fresh consideration. Both the ITAT and KFA had separately moved the Karnataka High Court in 2012 appealing against the ITAT’s order.

Ads by Google

More from Companies

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...