The income-tax department’s probe against UK-based broadcasting company SIS Live has found irregularities in the latter’s conduct, investigation documents accessed by DNA show.
The income-tax department’s probe against UK-based broadcasting company SIS Live has found irregularities in the latter’s conduct, investigation documents accessed by DNA show.
SIS Live, which bagged the controversial Rs246 crore broadcast contract for CWG, had refused to file its income tax return in response to an I-T department notice, forcing the latter to investigate the company’s affairs.
The company had replied that their liability to file returns will arise only in March 2011.
However, the I-T department report states, “The assessee failed to appreciate that the purpose of issuing notice u/s 142 (1) was to conclude the assessment u/s 174/174A as the assessee firm has been formed for a specific purpose and for a limited period only, and after achieving the said purpose the assessee is not likely to remain in India,” the I-T dept report states.
Subsequent visits by the I-T department to the company’s office revealed that the company was not maintaining any records whatsoever.
“Since the assessee was not forthcoming with the relevant documents a survey operation was carried out….during [which] no bills and vouchers of expenses incurred and books of accounts were found in the premises and the assessee could not explain where the same were being maintained.”
It further states, “Neither the assessee nor its tax consultants were able to provide the relevant details. The assessee has claimed to have a PE in India according to which the assessee is required to maintain its accounts regarding Indian operations which are also subject to audit u/s 44AB of the I-T Act.”
An amount of Rs29 crore tax liability was arrived at by the I-T department in absence of any documents produced by the company.
The company today responded to allegations. “SIS Live has kept proper accounts and copies of bills. These are administered by our central service centre in the UK, and operated online from India. Since the I-T Department visit to our project office in Delhi on October 5, we have provided all the documents requested within the agreed timescale.”
Doordarshan’s director general Aruna Sharma said, “The whole contract is transparent. There is nothing wrong in it. The deal has been done as per the General Finance Rules (GFR) and with proper approval by the ministry of information and broadcasting.”
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