I-T probes IPL fund sources

With the tiff between Indian Premier League commissioner Lalit Modi and its Kochi franchisee Rendezvous Sports World casting doubts over the funding sources of the sporting extravaganza,the income-tax department on Thursday launched a probe into IPLs funding pattern and the income flows. Senior I-T officials visited the Board for Control of Cricket in Indias office at Mumbais Wankhede stadium for gathering information,a move a senior Central Board of Direct Tax official here described as part of a source probe, which is neither a survey nor a search.

With the tiff between Indian Premier League commissioner Lalit Modi and its Kochi franchisee Rendezvous Sports World casting doubts over the funding sources of the sporting extravaganza,the income-tax department on Thursday launched a probe into IPLs funding pattern and the income flows.

Senior I-T officials visited the Board for Control of Cricket in Indias office at Mumbais Wankhede stadium for gathering information,a move a senior Central Board of Direct Tax official here described as part of a source probe, which is neither a survey nor a search.

According to official sources,the probe has been initiated to find out if there is any black money or illegal flow of funds from foreign shores.

The third edition of IPL (IPL-3) that is now underway would also be probed into for its funding as the computerised screening would automatically pop up the names of the firms concerned for scrutiny as and when there is fresh capital introduction, a CBDT member told FE.

This is not the first time that IPL has run into a controversy with the income-tax department. During IPL-1,the tax department had collected more than Rs 90 crore as TDS (tax deducted at source) after investigations while this year also after the returns for IPL-1 have been filed,some cases have already been selected for scrutiny, the official said.

Although IPL-2 was not held in India,the taxmen are keeping a close watch on the returns being filed by the parties. We are also keeping a tab on the income that would have been earned on IPL-2 outside India.

As for IPL-3,Rs 110 crore hasbeen collected as advance tax,and Rs 40 crore more is expected.

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The taxmen are also probing the funding sources of the Kochi team and havecreated a special cell in Mumbai to keep a tab on the IPL.