The Board of Control for Cricket in India (BCCI) may have met the deadline for replying to the queries by the Income Tax Department concerning the Indian Premiere League (IPL), but that’s not enough. Officials pointed out that the I-T Department has found the BCCI reply “inadequate”.
Responding to the allegations of tax irregularities and funding issues related to the IPL franchisees, the I-T Department had last week sent 10 queries to the BCCI. The Cricket Board had time till April 23 to submit its reply. The queries predominantly were about IPL franchisees’ funding and ownership patterns, and the moolah raked in from various matches, among others.
“We have not received adequate replies on the queries concerning the IPL from the BCCI. This is precisely the reason why we are carrying out our own searches,” said a tax authority official on condition of anonymity.
When asked why the BCCI — being the apex body for cricket in India and the parent entity for the IPL — could not come up with the required details, the official said, “The BCCI apparently does not have all the information at this stage. It may have some, while the IPL may have most. So there is no question of the BCCI complying with all our demands.”
Additionally, officials from the Central Board of Direct Taxes (CBDT) have clarified that there is no separate legal sanctity of the IPL and therefore the tax liability of the League will fall on BCCI.
The government withdrew the tax exemption, which had been enjoyed by the BCCI for years, in November 2009. The BCCI will have to pay tax starting from the period when the IPL began in 2008. This is because the IPL is seen as an entertainment venture.
The assessment of 2007-08, 2008-09, and 2009-10 for the BCCI is pending with the tax department. “These are the years which are very crucial from the point of view of the IPL,” said the official.
Oh, what a great revealation indeed for/by the Income Tax Department! After untimely arising from years of comfortable sleep and sweet dreams, it is really difficult to adjust to the harsh realities of the daylight. And, so, finally the juggernaut of the IT department, comprising of officers of the likes of the now-famous and widely known Banerjees of Mumbai, has started moving, a past chairman of whose apex board, richly rewarded for his specialised knowledge of accounting and so-called honesty, had successfully stopped long ago further investigations in the affairs of the BCCI and duly punished, as was his wont, the officers pursuing the then aborted investigation/enquiries.
Will the history repeat itself this time too ?