HYDERABAD: In a relief to the Telangana State Beverages Corporation Limited (TSBCL), a division bench on Friday set aside the prohibitory orders issued by the Income Tax department restraining the TSBCL from selling its liquor stocks.
The bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice PV Sanjay Kumar was allowing the petitions filed by TSBCL challenging the prohibitory order issued on Feb 28, 2015 by the IT department for alleged non payment of tax arrears of about `1,225 crore for assessment year 2012-13 and 2013-14.
On an earlier occasion, the bench in its interim order permitted sale of the stocks while remitting the money released into a separate account meant exclusively for sale. On Friday, the bench said though IT department served a notice for paying of tax arrears, the TSBCL was non-existent during the years for which the department raised the tax demand. The bench granted liberty to the IT department to proceed for recovery of arrears after bifurcation of assets and liabilities between the AP Beverages Corporation Ltd and TSBCL.