The Times of India 20.11.2010
GMADA submits Rs 15 crore as tax liabilities
CHANDIGARH: Greater Mohali Area Development authority surrendered Rs 15 crore as tax liabilities on the interest of Rs 45 crore earned from the subscription amount for Aerocity plots on Friday. Tax officials had conducted a survey at the authority's office on Friday.
"Brief investigations suggested that GMADA failed to pay advance tax on receipts of Rs 150 crore as interest on instalments and earnest money from applicants," said a spokesperson of the income tax department. The day-long survey at the GMADA office, conducted by the team headed by joint commissioner of income tax, Mohali range, also exposed serious anomalies in maintenance of accounts related to the Aerocity project.
"There is irregularity in proper demarcation of revenue expenditure and capital expenditure and no regular system of accounting is being followed by the authority. Several hundred crores of rupees deposited for acquisition of land for Airport Authority of India in different financial years have not been reflected under the correct heads in their accounts," a news release from the office of commissioner of income tax (CIT-II) Pawan Parmar Singh said.
"This has resulted in gross understatement of income and reporting of fictitious losses. The documents and evidence obtained during the survey are being scrutinized for necessary action,'"said Singh. GMADA had recently sought subscription for the allotment of 3,900 residential plots measuring between 125 to 500 square yards at Rs 12,000 per sq yard in Aerocity, a township carved out on 800 acres.
As many as 2,96,322 applicants had subscribed to the scheme resulting in receipt of several crores of rupees. The survey was carried out under Section 133 B of the Income Tax Act.
"Brief investigations suggested that GMADA failed to pay advance tax on receipts of Rs 150 crore as interest on instalments and earnest money from applicants," said a spokesperson of the income tax department. The day-long survey at the GMADA office, conducted by the team headed by joint commissioner of income tax, Mohali range, also exposed serious anomalies in maintenance of accounts related to the Aerocity project.
"There is irregularity in proper demarcation of revenue expenditure and capital expenditure and no regular system of accounting is being followed by the authority. Several hundred crores of rupees deposited for acquisition of land for Airport Authority of India in different financial years have not been reflected under the correct heads in their accounts," a news release from the office of commissioner of income tax (CIT-II) Pawan Parmar Singh said.
"This has resulted in gross understatement of income and reporting of fictitious losses. The documents and evidence obtained during the survey are being scrutinized for necessary action,'"said Singh. GMADA had recently sought subscription for the allotment of 3,900 residential plots measuring between 125 to 500 square yards at Rs 12,000 per sq yard in Aerocity, a township carved out on 800 acres.
As many as 2,96,322 applicants had subscribed to the scheme resulting in receipt of several crores of rupees. The survey was carried out under Section 133 B of the Income Tax Act.
