A division Bench of Hyderabad High Court comprising Chief Justice Kalyan Jyoti Sengupta and Justice P.V. Sanjay Kumar on Friday set aside the demand and attachment made by the Income Tax Department from Telangana State Beverages Corporation.
The Income Tax Department raised a demand of Rs. 1,225 crore and attached the godowns of the corporation which subsequently approached the court.
The Bench, in its interim order, passed in March permitted sale of the stocks while remitting the money released into a separate account meant exclusively for sale. After hearing the final arguments, the Bench delivered the judgment declaring that the Telanagana Beverages Corporation is a different entity from AP Beverages Corporation.
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.
