KFA moves SC on tax issue

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Jan 17 2013, 08:35am hrs
Kingfisher Airlines (KFA) on Wednesday moved the Supreme Court seeking setting aside of the Karnataka High Court order that asked the airline to deposit 50% of R371 crore that it is required to remit to income tax department as tax deducted at source from its employees.

A bench headed by Chief Justice Altamas Kabir directed the matter to be listed for hearing on Monday after senior counsel Mukul Rohtagi mentioned the matter for urgent hearing before it.

Challenging the impugned order, KFA said that the HC had allowed the department to recover money from it when there is no valid demand in the eyes of law. The HC had erred in the passing the order when during the pendency of the Revenues appeal ...the final liability of the petitioner (KFA) has not crystallised, the appeal stated.

According to KFA, the HC had failed to appreciate that it had raised the issue of the jurisdiction of the assessing officer to make a demand against it and the same has been admitted as a substantial question of law by the HC in its September 26 last years order.