Lok Sabha Question No. 4043 (UNSTARRED), answered on 2018-08-10
Subject: Tax Evasion by Corporates
Ministry: FINANCE
Asked by: REKHA ARUN VERMA, ARVIND GANPAT SAWANT

## Government of India Ministry of Finance Department of Revenue LOK SABHA UNSTARRED QUESTIONS NO. 4043

TO BE ANSWERED ON FRIDAY, AUGUST 10, 2018 SHRAVANA 19, 1940 (SAKA)

## TAX EVASION BY CORPORATES

## †4043. SHRIMATI REKHA VERMA: SHRI ARVIND SAWANT:

Will the Minister of FINANCE be pleased to state:

- (a) the details of cases of tax evasion by corporates lying pending in various courts along with the cases out of these pending for more than six years including oldest pending and the duration of its pendency; and
- (b) the details of tax evasion cases registered during the past five years, year-wise?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHIV PRATAP SHUKLA)

- (a): The  details  of  cases  of  Direct  and  Indirect  tax  evasion  by  corporates  laying  pending  in various courts are as under:

## Direct Tax

The  data  of  tax  evasion  by  corporates  lying  pending  in  various  Courts  is  not maintained centrally. However, the details of the pending cases before various Courts, including Income Tax Appellate  Tribunal  for  violations  of  various  provisions  of  Income-tax  Act,  1961,  which  may  also include the cases of Tax evasion by corporate are as follows:

| As on 31.03.2018   | As on 31.03.2018   | As on 31.03.2018              |
|--------------------|--------------------|-------------------------------|
| Supreme Court      | High Court         | Income Tax Appellate Tribunal |
| 6224               | 39066              | 92766                         |

Further,  the  details  for  the  cases  of  tax  evasion  by  corporate  pending  in  various Courts  in India for more than 6 years is not maintained centrally. However, the details of the cases pending as  on  1.4.2017  for  more  than  5  years  before  various  Courts,  including  Income  Tax  Appellate Tribunal for violations of various provisions of Income-tax Act, 1961 which may also include the cases of Tax evasion by corporates are as follows:

| Pendency of appeals for more than 5 years as on 1.4.2017   | Pendency of appeals for more than 5 years as on 1.4.2017   | Pendency of appeals for more than 5 years as on 1.4.2017   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| Supreme Court                                              | High Court                                                 | Income Tax Appellate Tribunal                              |
| 839                                                        | 6336                                                       | 2516                                                       |

## Indirect Tax

|                       | As on 31.03.2018   | Pending for more than 6 years   |
|-----------------------|--------------------|---------------------------------|
| Forum                 | Number             | Number                          |
| Supreme Court         | 1329               | 481                             |
| High Court            | 4708               | 1825                            |
| Customs, Excise and   | 23747              | 6799                            |
| Commissioner (Appeal) | 14293              | 1165                            |

Details of the oldest pending case is:

M/s.  Ballarpur  Industries  Limited,  Yamuna  Nagar,  Amount  Rs.  0.09  crore  pending  since 20.08.1973.

- (b): The details of Direct and Indirect Tax evasion cases registered during the past five years are as under:

## Direct Tax

Details of Prosecution case filed for willful attempt to evade tax etc under section 276C (1) of the Income-tax Act, 1961 during last 5 years are as under:

| F.Y.    |   No. of Prosecution cases filed for willful attempt to evade tax etc u/s 276C(1) |
|---------|-----------------------------------------------------------------------------------|
| 2013-14 |                                                                                75 |
| 2014-15 |                                                                               121 |
| 2015-16 |                                                                               118 |
| 2016-17 |                                                                               277 |
| 2017-18 |                                                                               542 |

Separate  figures  for  prosecution  cases  filed  against  corporate  and  non-corporate  are  not maintained centrally.

## Indirect Tax

| F.Y.                      |   Central Excise Detection |   Service Tax Detection |
|---------------------------|----------------------------|-------------------------|
| 2014-15                   |                       2123 |                    6719 |
| 2015-16                   |                       2366 |                    7534 |
| 2016-17                   |                       2127 |                    8085 |
| 2017-18                   |                        903 |                    5319 |
| 2018-19 (upto June, 2018) |                        162 |                    1779 |

| GST Evasion Cases        | GST Evasion Cases   |
|--------------------------|---------------------|
| Year                     | No. of Cases        |
| 2017 (July)- 2018 (June) | 1205                |

These figures are for total evasion from all business units. The distinction between corporates & non-corporates has not been maintained.

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