Wednesday, January 23, 2013

Kingfisher Airlines gets a small breather from Supreme Court in tax case

New Delhi: Kingfisher Airlines on Tuesday got a small breather from the Supreme Court, when the court adjourned hearing a plea by the income-tax department for dues over 400 crore, to permit the company time to work out things with investors.
Kingfisher counsel Harish N Salve appeared before a bench, comprising Justices DK Jain and Madan Lokur, and candidly requested for an adjournment saying that the company was in no position to pay its dues.
"Technically, a liability arises only when there is a demand. In this case, there is no demand," he said. He was referring to the ITAT order quashing the demand on the ground that the assessing officer had failed to take into account Kingfisher's versions before assessing the demand. "We are trying to keep our heads above water. It is a mess. We have to make basic payments. We keep shuffling (funds) around," Salve said.
23/01/13 Economic Times