I-T dept clips the wings of KFA

The Income Tax department attached all the assets of the cash strapped Kingfisher Airlines.

The I-T department attached all the assets of the company (Kingfisher Airlines Limited—KAL) and is in the process of recovering its dues by sale and attachment of assets and properties of the company, said a statement issued by chief commissioner, I-T, Bangalore.

The airline had deducted tax at source from employees’ salary and other payments for many years, but had failed to remit to the government account. This way, the company owes the I-T department more than Rs350 crores as tax dues.

Kingfisher House in Mumbai is under attachment under the second schedule of the I-T Act, 1961.

The statement released by the I-T department says the airline has failed to honour Karnataka high court’s directive to pay 50% of the demand and furnish bank guarantee for the balance amount. A special leave petition has been dismissed by Supreme Court. The chief commissioner has stated that any person doing transactions regarding the abovesaid property will be held on the charges of violating the Income Tax Act, 1961.