It wanted the cricket Board to come clean on its tax returns and the RTI reply dated July 30, 2013, shows that BCCI “owes Rs 550 crore in Income Tax dues". In fact, the amount may get much higher if the Income Tax department in Mumbai completes the assessment for financial years 2011-12 and 2012-13.
Incidentally, these two years are also the ones when the Indian Premier League (IPL) managed to lap big sponsors and advertisement revenue touched the sky during World Cup 2011 co-hosted by India.
There may be tax pending for earlier years also for which data was not made available in this RTI reply given by the assistant commissioner of Income Tax, Churchgate, Mumbai, and is also marked to the CIC, among other IT directorates in New Delhi and Mumbai.
The reply gives BCCI’s tax return status from the financial year 2006-07 to 2010-11 and starting from the first year itself, it shows that of the Rs 229 crore demanded in tax, the local IT department could only collect Rs 26.77 crore, leaving nearly Rs 196 crore pending with the Board.
In the following years too, the BCCI managed to pay less than the actual tax computed.
“In 2007- 08, the dues were Rs 42 crore, while in 2008- 09, it stood at Rs 74.32 crore and in the following year the pending amount was Rs 70.72 crore. In 2010- 11, the IT department made a tax demand of Rs 337 crore, but could actually collect Rs 170 crore, leaving Rs 167.11 crore in dues," says the RTI reply.
The RTI applicant Subhash Chandra Agrawal alleges “collusion between local IT department and all-powerful BCCI, currently battling on many fronts to save its face.” Agrawal adds: “Income tax Department should initiate an inquiry to fix responsibility on its erring personnel who left assessment proceedings pending against BCCI for too long, and those who failed to take suitable action against BCCI for recovery of such huge tax-dues… The IT Department didn’t respond to my earlier RTI application. Then I approached CIC, and the details emerged.”
Based on that request to the CIC, the latter wanted to know whether BCCI is getting any government funding.
The CIC has also ordered the BCCI and its member units to reveal information about exemption in income tax, customs duty and entertainment tax for the last five years since the 2007-08 fiscal.
Reproduced From Mail Today. Copyright 2013. MTNPL. All rights reserved.