Contradictory opinions: AG, Law Secy to appear before PAC

The Attorney General and the Law Secretary will appear before a Parliamentary panel this week on the issue of the AG's two 'contradictory' opinions on a CAG report which said expenditure on interest payment on tax refunds was in contravention of constitutional provisions.

During an internal meeting held on July 12, the Public Accounts Committee (PAC) had decided to summon Attorney General G E Vahanvati to explain the two 'mutually contradictory opinions' rendered by him on the CAG report.

The PAC has now asked AG Vahanvati and Law Secretary Brahma Avtar Agarwal to appear before it on July 26 to explain the contradictions.

Agarwal has been summoned as the PAC had earlier sought Law Ministry's opinion on the issue. But the ministry referred the matter to the country's top law officer.

The two will be questioned separately by the panel headed by BJP's Murli Manohar Joshi.

In his first opinion, the AG had supported CAG's view that expenditure on interest payment on refund of taxes was in contravention of Constitutional provisions.

But in his revised opinion, he said the Central Board of Direct Taxes (CBDT) was not at fault.

Revenue Secretary Sumit Bose could also be called at a later date to explain the Finance Ministry's stand.

PAC had taken up certain paragraphs of the CAG report on 'Expenditure incurred on interest on refunds of taxes' for examination.

The CAG had pointed that expenditure on interest on refunds of taxes amounting to Rs 10,499 crore was incurred by the CBDT in 2010-11 without Parliament's authorisation.