I-T dept rejects revised KFA appeal to unfreeze accounts

In what comes as a major setback for debt-ridden Kingfisher Airlines, the taxman has rejected the revised appeal by KFA, which was submitted late last evening. However, a dialogue continues between the I-T department and management and a meeting is slated later today. CNBC-TV18's Swati Khandelwal Jain reports. 

Sources say the taxman has asked the KFA management to revisit conditions of payments as it is not okay with tenure of the payment schedule.
The department wants KFA to bring down payment tenure. On its part, KAF has offered to make payments over an 18 month period on a weekly basis.
Meanwhile, Civil Aviation Minister Ajit Singh on Thursday made it clear that there were no plans to cancel the licence of the Kingfisher Airlines. "We don't Want Kingfisher to shut down. I have sent note on FDI in aviation to commerce minister. But there is no time-frame for Cabinet to discuss airline FDI," Singh said.
With Kingfisher Airlines facing huge turbulence, there is still uncertainty over moves by a consortium of bankers to offer fresh loan for the beleaguered carrier.
At 15:10 hrs shares of the Vijay Mallya-led airline company were trading up 0.80% at  Rs 25.25 a piece. (With inputs from IBNLive)