Irregular tax exemptions given to cricket associations: CAG
  • This Section
  • Latest
  • Web Wrap
Last Updated: Friday, December 13, 2013, 16:48
  
Irregular tax exemptions given to cricket associations: CAGNew Delhi: The Income-tax Department has allowed irregular exemptions on TV rights from BCCI to four cricket associations resulting in non-levy of tax to the tune of Rs 37.23 crore, the Comptroller and Auditor General (CAG) said on friday.

"IT Department allowed exemption in four ... Cases for income received from TV rights from BCCI in cases of Saurashtra Cricket Association, Baroda Cricket Association, Kerala Cricket Association and Maharashtra Cricket Association resulting in short levy of tax of Rs 37.23 crore," it said in a report tabled in Parliament.

The CAG said that under Section 2 (15) of the Income Tax Act, a public utility activity cannot be treated as "charitable" if it involves carrying on of any activity in the nature of trade, commerce or business.


Referring to the Saurashtra Cricket Association case, CAG said the body has collected TV subsidy of about Rs 35 crore in three years, but spent only a small amount on promotion and development of sport, accumulating Rs 19.44 crore.

"This resulted in under-assessment of Rs 19.44 crore with short levy of tax of Rs 8.45 crore," it said.

Pointing out another instance, the official auditor said that the IT Department allowed irregular exemptions to 30 Trusts involving tax effect of Rs 59.61 crore where voluntary contributions, received without specific directions, were taken to corpus fund instead of treating at income.

"We observed that AOs (assessing officers) allowed treatment of voluntary contribution received without specific directions as income in corpus fund fo the assessees in 30 cases. This resulted in non-levy of tax of Rs 59.61 crore," it said.
PTI

First Published: Friday, December 13, 2013, 16:48


comments powered by Disqus

Most Popular in News