Justice KN Keshvananarayana passed this interim order following a petition filed by KFA and Mallya. The judge also ordered a notice to the Income Tax department in this regard.
The petitioners claimed that proceedings pertaining to the issue are pending before the high court as well as Income Tax Appellate Tribunal (ITAT) and the authorities failed to consider the same before filing/registering complaint. They further claimed that the requirements under the Income Tax Act have not been complied with as notices have preceded the alleged authorization to the commissioner and the same is without jurisdiction.
According to them, it is only the chief commissioner of Income Tax or the director general Income Tax who have the said jurisdiction.
The BFAL contends that it is running under loss and salaries to employees have been paid from borrowed money and TDS was not deducted.
The Income tax (I-T) department had filed these complaints under section 276B of the Income Tax Act, 1961 against KFA and Mallya.
KFA is facing a total TDS demand for Rs 401 crore.
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