HC admits review plea against I-T department

TSBC files contempt case

The Hyderabad High Court on Friday admitted a review petition moved by the Telangana government seeking to review an order passed by the division bench with regard to recovery of tax by the Income Tax department from the Telangana State Beverages Corporation.

The corporation also filed a contempt case against the I-T department seeking to punish authorities for recovering `1,274 crore from the corporation in violation of an order passed by the division bench.

On May 1, 2015, a division bench ordered that the alleged dues of AP Beverages Corporation Ltd for the assessment year 201213 after the appointed day, can be recovered from the successor state governments as per Section 68 (2) of the AP Reorganisation Act 2014, as all these dues being part of liability can be apportioned accordingly.

The bench said in the event, TS does not pay the proportionate liability of the tax dues for the assessment year 2012-13 or previous thereto, if any, it would be open for the respondents to recover the same from TS, since it is to share the proportionate liability along with assets of the undivided APBCL.

K. Ramakrishna Reddy, advocate general of Telangana, brought to the notice of the court that the authorities have withdrawn `1,274 crore from the government accounts without issuing any notice to it.

He said that the assets and liabilities between the APBCL and TSBCL are yet to be apportioned and they are unable to understand on which basis the IT authorities have arrived at the conclusion that the government is liable to `1,274 crore in arrears.

A division bench of acting Chief Justice Dilip B. Bhosale and Justice P.V. Sanjay Kumar said that the issue will need an amicable solution.

The counsel representing the Income Tax department has sought two weeks time to file a counter affidavit. he bench adjourned the case for two weeks.