*Authority paid tax for first time since 1970
Mohinder Verma
JAMMU, Mar 31: Despite several attempts by the bureaucrats to create hurdles, the Income Tax Department has finally realized Rs 21.76 crore tax from the Jammu Development Authority (JDA) after tightening noose around the officers at the helm of affairs in the Authority. Now, the IT sleuths are laying focus on recovery of Rs 34 crore tax from the Srinagar Development Authority, which too falls in the list of defaulters.
As already reported exclusively by EXCELSIOR in its edition dated March 29, the Division Bench of State High Court comprising Chief Justice N Paul Vasanthakumar and Justice Tashi Rabstan few days back had directed the Jammu Development Authority to deposit 50% of the demand amount before the Deputy Commissioner of Income Tax within a period of four weeks.
Actually, the JDA had to pay Rs 44 crore tax on the income generated through its commercial activities. But despite explicit directives of the High Court there was no compliance from the Jammu Development Authority, which continued to adopt dilly-dallying tactics.
As the Income Tax Department, J&K Circle was in strong legal position, the Principal Commissioner of the department, Sangeeta Gupta took up the matter with the senior functionaries of the Governor’s Administration and accordingly a meeting was convened yesterday, official sources told EXCELSIOR.
“Even in the meeting, attempts were made by one senior officer to create hurdles in payment of tax by the Jammu Development Authority and finally it was unanimously decided to obtain legal opinion, which ultimately went in the favour of the Income Tax Department”, sources further said, adding “despite this, the Jammu Development Authority didn’t come forward to voluntarily pay the tax as per the directives of the High Court and this compelled the Income Tax Department to take stringent steps”.
Keeping in view the dilly-dallying tactics of the JDA, Principal Commissioner of Income Tax, Sangeeta Gupta today got the account of the JDA in Jammu and Kashmir Bank freezed and due to tightening of noose by the IT Department, Jammu Development Authority had to cough up Rs 21.76 crore tax, which was due during the past several years.
“It is for the first time ever since the establishment of JDA in 1970 that it was compelled to pay tax on the income being generated through its commercial activities”, sources said, adding “in future the IT Department would ensure that JDA pays tax regularly, which otherwise is also beneficial for the JDA as by timely paying tax it would be able to avoid interest”.
According to the sources, Srinagar Development Authority is the next target of the Income Tax Department as it is also created on the analogy of JDA and is carrying out the commercial activities on the lines of JDA. “The income being generated by the Srinagar Development Authority (SDA) is also taxable”, sources added.
Disclosing that tax to the tune of Rs 34 crore is due from the Srinagar Development Authority, sources said, “by paying 50% of the tax amount on the analogy of the JDA, the SDA would have avoided interest, which would be charged by the Income Tax Department and the same would run in crores of rupees”.
They further informed that it was only due to unwarranted act on the part of a senior IAS officer that tax could not be collected from the SDA at the end of current financial year. “The IT Department would take all required steps from next month so that SDA also coughs up the due tax”, sources added.
When contacted, Principal Commissioner of Income Tax, J&K Circle, Sangeeta Gupta confirmed recovery of Rs 21.76 crore tax from the JDA after hectic efforts by the department. “We will make sure that SDA also pays due tax”, she added.
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