New Delhi, May 18: The Comptroller and Auditor General of India (CAG) has pulled up the Income Tax Department for not recovering arrears to the tune of Rs 887 crore as on March 2002 and failing to attach properties in 186 cases in which no dispute or litigation was involved. "The department failed to recover undisputed demands/attach identified properties or conduct sale of attached properties in 186 cases involving revenue effect of Rs 887.72 crore," CAG said in its recent report.
Demands from the Tax Department involving arrears of Rs 734.44 crore, which were neither under appeal nor stayed by any court, were not paid in 110 cases in Punjab, Orissa, Rajasthan, Haryana, Andhra Pradesh, Uttar Pradesh, Maharashtra and West Bengal, it said
"No action was taken to attach assessees' movable or immovable properties or to ensure their arrest and detention in prison," it said.
In another 76 cases in Andhra Pradesh, Punjab, Karnataka, Madhya Pradesh, Maharashtra and West Bengal which involved revenue to the tune of Rs 153.27 crore, the properties were identified but not attached, it said, adding or properties were attached but not sold or bank accounts were attached but after finding that bank account was closed no further action to attach properties was taken.
The CAG report said the tax arrears against the assessees who had left the country for good, leaving no assets, stood at Rs 263.90 crore.
In about 90 cases in Gujarat, Haryana, Chandigarh, Karnataka and West Bengal, no action or little action was taken by the recovery officials to proceed against the assessees as they remained absconding and no properties could be attached, it said.
Bureau Report