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IT dept freezes bank a/cs of KFA; stk slips-news30052012


The income tax (IT) department has attached over two dozen accounts of Airlines");'>Kingfisher Airlines ( KFA) last week for non-payment of tax dues to the tune of about Rs270 crore.


'Around 30-40 accounts of the cash-strapped airlines were attached two weeks back. The tax due is of around Rs270 crore from financial year 2009-10 onwards,' an IT official said.

Meanwhile in a statement, KFA 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', it said.

KFA 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 Rs9 crore starting from April.

'The airline company has been paying only half that amount of Rs9 crore every week,' the official added.
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