Lok Sabha Question No. 319 (UNSTARRED), answered on 2017-02-03
Subject: Pending Tax Evasion Cases
Ministry: FINANCE
Asked by: REKHA ARUN VERMA

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA

## UNSTARRED QUESTIONS NO. 319

TO BE ANSWERED ON FRIDAY, FEBRUARY 3, 2017 MAGHA 14, 1938 (SAKA)

## PENDING TAX EVASION CASES

## 319: SHRIMATI REKHA VERMA

Will the Minister of FINANCE be pleased to state:

- (a) The number of cases of tax evasion by corporate companies under litigation in courts and the number out of them lying pending for more than six years;
- (b) The number of cases of tax evasion registered against the corporate companies during the last three years; and
- (c) The details of such companies prosecuted for tax evasion during the said period?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SANTOSH KUMAR GANGWAR)

- (a) The  category  wise  details  of  the  cases  of  tax  evasion  by  corporate  companies  under litigation in various Courts in India is not maintained centrally. The details of cases pending in High Court and Supreme Court which may also include the cases of Tax Evasion are as under:

## Direct Taxes

| Court         |   No. of Cases pending as on 30.9.2016 |   No. of Cases pending for more than 5 years as on 1.4.2016 |
|---------------|----------------------------------------|-------------------------------------------------------------|
| High Court    |                                  25336 |                                                        4462 |
| Supreme Court |                                   4587 |                                                         653 |

## Indirect Taxes:

(as on 31.12.2016)

| Court         |   No. of appeals pending |   No. of appeals pending for more than 5 years |
|---------------|--------------------------|------------------------------------------------|
| Supreme Court |                     2914 |                                            848 |
| High Courts   |                    13839 |                                           4583 |

## (b)

## Direct Taxes:

There is no provision for registering of a case under the provisions of Income-tax Act, 1961 for violations of the various provisions of the Act. Tax Evasion matters including the tax evasion  matters  by  the  corporate  companies  are  investigated  by  the  authorities  concerned and appropriate action under direct taxes laws including assessment of income, levy of tax, imposition  of  penalty  and  launching  of  prosecution,  is  taken,  in  appropriate  cases.  Based upon the outcome of investigation, undisclosed income is assessed on the basis of evidence gathered  on  the  relevant  issues,  following  the  quasi-judicial  process  under  the  Income-tax Act,  1961  which  is  subject  to  appeal  before  various  appellate  authorities,  including  the Hon'ble  Supreme  Court,  before  reaching  the  finality.  Penalty  is  also  levied  in  appropriate cases following the due process under the Income-tax Act, 1961 and the same is also subject to  further  appeal  as  per  law.  Prosecution  complaints  for  various  offences  including  willful attempt to evade tax are also filed in appropriate cases.

## Indirect Taxes:

Information about tax evasion by corporate company-wise is not maintained centrally.  However, the total number of indirect tax evasion cases during the last three years is as under:-

|   Year |   Central Excise Duty |   Customs Duty | Service Tax   |
|--------|-----------------------|----------------|---------------|
|   2604 |                  1815 |           4288 | 2013-14       |
|   2123 |                  1458 |           3402 | 2014-15       |
|   2366 |                  1815 |           3545 | 2015-16       |

## (c). Direct Taxes:

Prosecution cases filed for willful attempt to evade tax etc. under section 276C(1) of the Income-tax Act, 1961 during last 3 years and upto 30.09.2016 is as under:

|   Sl. No. | Financial Year                 |   Number of prosecution cases filed for willful attempt to evade tax etc u/s. 276C(1) |
|-----------|--------------------------------|---------------------------------------------------------------------------------------|
|         1 | 2013-14                        |                                                                                    75 |
|         2 | 2014-15                        |                                                                                   121 |
|         3 | 2015-16                        |                                                                                   118 |
|         4 | 2016-17 (upto September, 2016) |                                                                                    63 |

## Indirect Taxes:

Information  about  prosecution  launched  is  not  maintained  corporate  company-wise centrally.  However,  the  total  number  of  prosecution  cases  launched  for  indirect  tax  evasion cases during the year 2015-16 & 2016-17 is as under:-

| Year           | Opening Balance   | No. of Cases where prosecution has been considered   | No. of prosecution launched   |
|----------------|-------------------|------------------------------------------------------|-------------------------------|
| Central Excise | Central Excise    | Central Excise                                       | Central Excise                |

| 2015-16     | 1277 (April,2015)   | 59 (upto March, 2016)   | 78 (upto March, 2016)   |
|-------------|---------------------|-------------------------|-------------------------|
| 2016-17     | 1295 (April, 2016)  | 21 (upto Dec, 2016)     | 41 (upto Dec, 2016)     |
| Service Tax | Service Tax         | Service Tax             | Service Tax             |
| 2015-16     | 32 (April,2015)     | 13 (upto March, 2016)   | 09 (upto March, 2016)   |
| 2016-17     | 37 (April, 2016)    | 10 (upto Dec, 2016)     | 14 (upto Dec, 2016)     |
| Customs     | Customs             | Customs                 | Customs                 |
| 2015-16     | 3785 (April,2015)   | 142 (upto March, 2016)  | 258 (upto March, 2016)  |
| 2016-17     | 3833 (April, 2016)  | 316 (upto Dec, 2016)    | 191 (upto Dec, 2016)    |

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