Income Tax department freezes APBCL bank accounts
January 31, 2014 - Hyderabad
The Income Tax department on Friday got the bank accounts of Andhra Pradesh Beverages Corporation Limited (APBCL) frozen over liability of income tax payment. The corporation and the Income Tax department were engaged in a legal battle over payment of income tax. It may be recalled here that the IT served notices to the Corporation over payment tax on the income it accrued but the latter contended that it was part of the State and hence not liable for payment.
The Excise Act that was amended retrospectively state that that the proceeds of liquor belong to the State Government and hence was not taxable.
The Income Tax authorities went to the court demanding the Corporation to pay but the High Court declined to give stay and asked them to dispose the case expeditiously.
The Tribunal that disposed the case a week ago and an order resulted in the liability of Rs.1,600 crore income tax for the corporation according to sources.