I-T dept fails to collect tax of Rs 2 lakh cr: CAG

The Rs 2 lakh crore that remained uncollected over the years till March 2009,despite I-T department raising demands for it,comprised demand of Rs 90,000 crore of earlier years and demand of 2008-09 of Rs 1.1 lakh crore,the CAG informed.

Had the total demand been collected,it would have taken care of two-thirds of the country’s fiscal deficit that fiscal,CAG officials said.

Interestingly,more than one-third of the uncollected demand is due from “relatively unknown” Pune-based businessman and stud farm owner Hasan Ali,the officials said.

“The total uncollected demand is Rs 2 lakh crore with one group (Hasan Ali) alone accounting for Rs 71,874 crore,” CAG said,adding that there are various reasons to the uncollected demand.

“Fifty-three per cent was because there was no asset for recovery or the companies were under liquidation,” the report said citing ‘assesse not traceable’ as the next major reason.

The auditor suggested increasing the accountability of the tax recovery officers and incentivising achievements to make recovery proceedings more effective.

“Board should frame up a time bound action plan for recovery of current and arrears demands by fixing target for each assessing officer,” it said.