Kingfisher Airlines' accounts frozen for non-payment of tax dues
Income Tax department freezes Kingfisher Airlines' accounts because they had an outstanding claim of nearly Rs 270 crore.
The income tax department has attached over two dozen accounts of Kingfisher Airlines last week for non-payment of tax dues to the tune of about Rs 270 crore.
"Around 30-40 accounts of the cash-strapped airlines were attached two weeks back. The tax due is of around Rs 270 crore from financial year 2009-10 onwards," an income tax official said.
Meanwhile, Kingfisher Airlines, in a statement, said, "the IT department attached two of our bank accounts on May 24 which was not in accordance with the Speaking order of the Honourable IT Appelate tribunal during the hearing. Subsequently, in a written order of May 25, the tribunal set aside the entire demand made by the IT assessing officer. As such there are no tax dues to be currently paid and the attachment orders on two bank accounts have to be lifted.".
Kingfisher Airlines was found to have deducted tax at source (TDS) on salary payments but had not deposited it in government's account.
Earlier in March, the I-T department had defrozen KFA accounts after the Bangalore Bench of the Income Tax Appellate Tribunal directed the company to pay the amount in weekly instalments of Rs 9 crore starting from April.
"The airline company has been paying only half that amount of Rs 9 crore every week," the official added.