Kingfisher moves SC for stay on TDS payment

The cash-strapped Kingfisher Airlines on Wednesday urged the Supreme Court to stay a Karnataka High Court order directing it to deposit around Rs 185 crore with the Income Tax department, recovered as tax deducted at source (TDS) from its staff.

A three-judge bench presided over by Chief Justice Altamas Kabir agreed to hear on Monday the special leave petition filed by the company owned by Vijay Mallya against the HC’s order passed on December 5.

Senior advocate Mukul Rohatgi mentioned the matter seeking urgent relief against a possible recovery and attachment proceedings by the Income Tax department.

He submitted that the order was likely to cause “irreparable injury and harm” as the airlines was already facing severe financial crisis on account of reasons beyond its control.

In its petition, Kingfisher challenged the order ordering it to deposit 50 per cent of the total amount of Rs 371 crore, which the company was allegedly required to remit to the I-T department as TDS from its employees and payments made towards company expenses.
The HC had also asked the company to furnish bank guarantee for the remaining amount within six weeks.