The Public Accounts Committee of Parliament has rapped the Central Board of Direct Taxes (CBDT) for issuing conflicting orders on the assessment of the income tax liability of the Pakistan, India, Sri Lanka joint management committee (Pilcom) for organising the 1996 cricket World Cup.
The panel has asked the finance ministry to come out with suitable guidelines to deal with demands for such tax exemptions.
The report tabled in Parliament today said such an action by CBDT interfered with the assessment proceedings initiated against Pilcom by tax authorities in Kolkata.
The committee said that in the process, the board not only impeded the due process of law but also "aborted" the income tax proceedings by "usurping' the statutory powers of a subordinate authority.
According to the report, CBDT had first declared that Pilcom will not be liable to pay any income tax as it is not an association of persons. Instead, it said that the Board for Control of Cricket in India (BCCI) should be treated as an agent for Pilcom. But subsequently, the board went back on its earlier instruction and asked Kolkata tax circle to assess Pilcom for tax purposes.
