The Comptroller and Auditor General (CAG) said in a report released on Friday that the Income-Tax Department (I-T) understated claims on Pune-based businessman Hasan Ali because it failed to take into account interest payments due on taxes linked to five years for which he filed no returns. It said the shortfall was as high as R3,349.90 crore because a raid had revealed in 2007 that Ali had not filed returns from assessment year (AY) 2001-02 to 2006-07.
An income-tax department source told HT that in 2008, the total demand on Hasan Ali was around R70,000 crore which has now been revised to around R74,000 crore. Hasan Ali filed all returns in May 2007 and says he has committed no wrongdoing.
“While, assessing a high risk assessee, …the I-T department should have been extra careful,… but after we pointed it to them, the department has taken remedial action,” deputy CAG Anupam Kulshreshtha told reporters.
The Enforcement Directorate arrested Hasan Ali on March 8 but a Mumbai special court granted him bail on March 11, questioning the authenticity of documents produced by the ED to book him under the Prevention of Money Laundering Act. But the Supreme Court on March 17 cancelled his bail and stayed the special court’s order.
