Millennium Post

SC dismisses Kingfisher’s plea against Rs 372-cr TDS demand

The Indian Supreme Court has dismissed the plea of grounded Kingfisher Airlines Ltd against an order of the Karnataka High Court asking it to pay around Rs 372 crore to the Income Tax department for non-payment of TDS, cut from salaries of its employees.

A bench of Justices Ranjan Gogoi and N V Ramana rejected Vijay Mallya-owned airlines' plea against the High Court's order. The High Court had upheld the assessment order of the IT department for financial years 2010-11, 2011-12 and 2012-13 and that the firm has not paid Tax Deducted at Source (TDS) from the salaries of employees. The apex court said there was no “legal and valid” ground for interference in High court's order and dismissed the appeal of the airlines. It also rejected airlines plea to direct IT department to reconsider facts relating to quantum of TDS payments already remitted.

The IT department had initiated proceedings against airlines in 2011 alleging that the carrier failed to remit the TDS from employees' salaries and other payments with the government. The department had finalised the demands at Rs 372 crore, around Rs 302 crore towards TDS and Rs 70 crore
as interest.
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