|  |  |  |  | 

Business Exclusive Headlines News

undue concession to Amrithanandmayi and Tata Trusts; CAG

New Delhi, Dec 14 (): CAG the government auditor has found Mata Amrithanandamayi Math and the ICAI were among those that got irregular tax exemptions. CAG detected 240 cases in which irregular tax exemptions totaling to Rs 248.39 crore were given. CAG says Income Tax Department has not taken a uniform policy in the depreciation allowance/disallowance with respect to trusts. The Matha Amrithanandamayi Math, the CAG said made the claim of depreciation of Rs 138.46 crore for assessment years 2007 to 2009 under income from property held by the Trust and it was not in order. The CAG further said the Math did not add back the depreciation for any of the assessment years for which it already claimed deduction towards acquisition of capital assets as application money impacting potential revenue of Rs 46.77 crore. The CAG report said that the Income tax assessing officer did not allow depreciation in case of the Vivekanand Shiksha Samiti for the assessment year 2010, it allowed ICAI to get tax exemption.

CAG feels the Finance Ministry in principle, whether depreciation to Trusts is to be allowed or not to and bring inconsistencies in granting of depreciation arising out of divergent views expressed by various courts. CAG faulted IT for allowing tax exemption to two Tata trusts involving Rs 1,000 crore.

Exemptions were given to Jamshetji Tata Trust and Navajbai Ratan Tata Trust who invested Rs 3,139 crore in modes not allowed due to accumulation of capital gains which involved loss of Rs 1066.95 crore. The CAG said Jamshetji Tata Trust and Navajbai Ratan Tata Trust gained Rs 1,905 crore and Rs 1234 crore respectively due to capital gains during assessment years 2008-09 and 2009-10, The IT assessing officer should have brought under purview the investment aggregating Rs 3139 crore under tax net and by not doing so it resulted in Rs 1,066.95 crore short fall.