IANS/New Delhi

In a jolt to business baron Vijay Mallya, the Supreme Court yesterday dismissed a petition by his Kingfisher Airlines (KFA) challenging the Karnataka High Court order directing it to deposit 50% of the amount demanded by the income tax department and provide a bank guarantee for the balance.
Dismissing the petition, a bench of justice R M Lodha, justice J Chelameswar and justice Madan B Lokur said the tax demand raised by the income tax department pertained to tax deducted at source from the payments made to its staffers by the KFA.
As it dismissed the plea, the court also cold-shouldered the plea by senior counsel Harish Salve seeking the adjournment of the hearing for another three weeks to enable the airline to mobilise funds to meet the tax demand.
The apex court had on January 22 given the airline four weeks to neutralise its tax liabilities as Kingfisher said that it was in negotiations with the investors for the revival of its grounded fleet.
The high court by its December 5, 2012, order had asked the airline to deposit the 50% tax amount and furnish a bank guarantee for the remaining amount.
Kingfisher Airlines, in its petition, while challenging the high court order, had sought to restrain the income tax department from taking any coercive step against it directly or indirectly.
The high court order, the petition had said, would cause “grave hardship” to the airline and the “public at large in as much the petitioner will not be able to revive its business, for which it is making a serious effort”.
The petition had contended that “public money has been invested in the business of the petitioner and if as a result of the impugned order, the petitioner was unable to revive its business, grave hardship would be caused to the public at large”.