I-T dept hires auditor for MbPT

CBDT recommended move after trust's books showed high depreciation

The Income-Tax department has appointed Haribhakti and associates as the special auditors for the Mumbai Port trust (MbPT).

According to official sources, the special audit has been ordered as the trust has claimed huge depreciation of around Rs 300 crore, without furnishing requisite details.

The audit has been ordered for 2001-02, when the trust became a taxable body. The Income-Tax department felt the need for an external auditor as the trusts' accounts was very complex and as a result the revenue department was losing on taxes.

Sources said that the trust claimed a huge refund of Rs 45 crore for the same year 2001-02. The I-T department decided to put the special auditor after the trust was taken up for scrutiny assessment.

To widen the tax base the Central Board of Direct Taxes (CBDT) directed the Income-Tax department to take up high refund cases for scrutiny assessment last year.

The MbPT was exempt from paying taxes till 2001-02 as a local body. In addition to MbPT, the income tax department also proposes to bring in another local body "�Brihanmumbai Municipal Corporation (BMC) into the tax net.

The taxes will be applicable to the extent of income generated by running buses beyond the municipal area. However no decision has been taken yet as the department is still in talks with the municipal body, said sources.

Meanwhile the department has geared up for meeting the October 12 deadline to implement the Right to Information Act. Every chief commissioner in the country has appointed Central Public Information Officer (CPIO) within the the commissionerate.

If the information from the appointed CPIOs is not forthcoming, the respective chief commissioner will act as the appellate authority for the grievance. If there are any grievances for gathering data from the chief commissioner, headquarter coordination office of each income tax office will act as the appellate authority.

As per the Act, any information sought by the public has to be furnished within one month of the query. In case the information pertains to affects life and liberty of a person, it has to be furnished within 48 hours.