"Penalty proceedings under section 271B have been initiated for assessment years 2004-05, 2005-06, 2007-08, 2008-09 and 2009-10 for non-filing of tax audit report (against Board of Control for Cricket in India)", the Minister of State for Finance S S Palanimanickam said in a written reply to the Lok Sabha.
According to the income tax department, the Minister said, the BCCI is required to file the audit reports under section 44AB of the Income Tax Act, 1961.
Under Section 44AB an entity carrying on business or profession is required to get its accounts audited by an accountant before the specified date and furnish the report of such audit in the prescribed form to the tax authorities.
The BCCI, he added, had been filing its audited report under section 12A(b), which deals with trusts and charitable institutions, to substantiate its claim for tax exemption.
The sports boards, he added, are required to get their accounts audited as per the provisions of the tax laws.
Palanimanickam further said that assessments with regard to BCCI were completed and there was a tax arrear demand of Rs 165.55 crore outstanding against the sports body for the assessment years 2004-05, 2005-06 and 2009-10 and the "same shall be adjusted against the refund of Rs 180 crore due for assessment year 2012-13." (MORE)
