I-T dept lays first claim to 'Kingfisher House'

I-T dept lays first claim to 'Kingfisher House'

The income tax department issued a statement on Friday saying that it would have priority over lenders on “Kingfisher House” in Mumbai to recover its dues of Rs 350 crore from the beleagured Kingfisher Airlines (KFA).

The statement, it said, is in the wake of Karnataka High Court decision on Wednesday in which it dismissed a plea by KFA seeking to restrain the SBI-led lenders’ consortium from taking possession of “Kingfisher House.” 

KFA had filed the plea on November 14, 2013 seeking a stay by lenders to sell the property to recover their dues.The department said that the Rs 350 crore due from KFA pertain to tax deducted at source from salaries of employees and other payments over the years but not remitted to the department according to rules.. As a result, the department attached KFA's properties to recover its dues.

It said, “It is a settled proposition of law that the amount due to the government under any statute under the provisions of Income Tax Act, 1961 will have priority over other debts and as such the dues of the department will have to be settled first before the lender consortium of banks can stake any claim to the property.”

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