NEW DELHI: Grounded carrier Kingfisher
AirlinesBSE 0.77 % moved the Supreme Court on Wednesday challenging a Karnataka High
Court order of December 5 that directed it to pay about Rs 234
crore of income tax dues within six weeks.
The Vijay Mallya-owned airline said it could not be asked to pay the amount as the Income Tax Appellate Tribunal had set aside the assessment order passed by the tax authorities. It also said "irreparable injury and harm" would be caused to the airline if it was asked to deposit the money.
A three-judge bench, led by Chief Justice Altamas Kabirhas, said it will hear the plea on Monday. The high court had directed Kingfisher Airlines to pay up half of the tax dues for 2010-11 and 2011-2012 and furnish a bank guarantee for the remaining after the revenue department challenged the Tribunal's order.
In its petition, Kingfisher said, "... since the assessing orders and CIT (A) orders have been set aside by the ITAT, there does not exist a valid demand in the eyes of the law.... The HC failed to appreciate that such a recovery will be without authority of law and hence will be illegal."
The Tribunal has remanded the issue back to the assessing officer for a reassessment, the airline added.
"... the impugned order will cause grave hardship to the petitioner and the public at large, in as much as the petitioner will not be able to revive its business, for which it is making serious efforts," the petition said. Kingfisher asked the Supreme Court to stay the high court order, claiming that it has already paid Rs 135 crore to the I-T department.
The company said it was facing "financial crisis on account of reasons beyond its control", such as the spurt in crude prices, heavy taxes on aviation turbine fuel in India, and depreciation of the rupee".
The petition said that the crisis at Kingfisher has been aggravated by the coercive actions taken by the I-T department since 2012.
Kingfisher has a debt of Rs 7,057.08 crore. Its net loss widened to Rs 444.27 crore for the quarter ended December 31, 2011, from Rs 253.69 crore in the same quarter of the previous fiscal.
Its aircraft have been grounded since October 1 last year, when its pilots went on strike protesting non-payment of salaries.
The government suspended the Kingfisher Airlines' licence after it failed to explain disruption of services. Kingfisher's licence expired end of last year following its inability to restart operations.
The Vijay Mallya-owned airline said it could not be asked to pay the amount as the Income Tax Appellate Tribunal had set aside the assessment order passed by the tax authorities. It also said "irreparable injury and harm" would be caused to the airline if it was asked to deposit the money.
A three-judge bench, led by Chief Justice Altamas Kabirhas, said it will hear the plea on Monday. The high court had directed Kingfisher Airlines to pay up half of the tax dues for 2010-11 and 2011-2012 and furnish a bank guarantee for the remaining after the revenue department challenged the Tribunal's order.
In its petition, Kingfisher said, "... since the assessing orders and CIT (A) orders have been set aside by the ITAT, there does not exist a valid demand in the eyes of the law.... The HC failed to appreciate that such a recovery will be without authority of law and hence will be illegal."
The Tribunal has remanded the issue back to the assessing officer for a reassessment, the airline added.
"... the impugned order will cause grave hardship to the petitioner and the public at large, in as much as the petitioner will not be able to revive its business, for which it is making serious efforts," the petition said. Kingfisher asked the Supreme Court to stay the high court order, claiming that it has already paid Rs 135 crore to the I-T department.
The company said it was facing "financial crisis on account of reasons beyond its control", such as the spurt in crude prices, heavy taxes on aviation turbine fuel in India, and depreciation of the rupee".
The petition said that the crisis at Kingfisher has been aggravated by the coercive actions taken by the I-T department since 2012.
Kingfisher has a debt of Rs 7,057.08 crore. Its net loss widened to Rs 444.27 crore for the quarter ended December 31, 2011, from Rs 253.69 crore in the same quarter of the previous fiscal.
Its aircraft have been grounded since October 1 last year, when its pilots went on strike protesting non-payment of salaries.
The government suspended the Kingfisher Airlines' licence after it failed to explain disruption of services. Kingfisher's licence expired end of last year following its inability to restart operations.
No comments:
Post a Comment