TNN | Jul 19, 2014,
These are some of the many charges brought in by CAG in its report on partnership firms tabled in Parliament on Friday.
According to the report, the Income Tax (IT) department in the assessment year 2010 assessed the total income of Adani Exports at Rs 6000 after allowing a (tax) deduction of Rs 234.39 crore under Section 10 AA of the Income Tax Act.
“Scrutiny of the partners’ case revealed that partners had claimed exemption of above deducted amount under section 10(2A) of the act thereby leading to excess exemption by an equal amount. This resulted in excess exemption of Rs 234.39 crore under section 10(2) A,” the report notes.
Section 10(2)A of the Act provides that in case of a person being a partner of a firm which is separately assessed as such, his share in the total income of the firm shall not be included in computing the total income of previous year.
The report says CAG noticed that in 15 cases in six states companies had claimed exemptions similarly.
In another case involving Adani Exports, the report says the IT department assessed the firm’s income at Rs 74,000 after allowing a deduction of Rs 179.07 crore under Section 10AA of the Act. “We observed that the assessee firm (Adani) had not provided for the interest of Rs 23 crore (at the rate of 9%) to the partners although the same was provided in the deed. Thus, the firm had made more than reasonable profits which would have accrued to the firm and consequently enabled the firm to claim higher amount of exemption …” the report notes.
The report says CAG requisitioned 27,944 assessment records relating to firms out of which 26,328 were audited. Of these 1,497 cases were highlighted for systemic, compliance and control issues involving tax effect of Rs 328.04 crore. Some of the other companies that are cited in the CAG report in connection with wrongful tax deductions include Price Waterhouse Coopers and various realty firms in Mumbai.
July 22, 2014 at 1:30 pm
Tell Adani/BANIA to take their Caste share of land from India and go build their own nation as per “Communal Award”. They’re less than 1% in India.
Google “90% of corrupt money in India is with forward caste”.