Lok Sabha Question No. 132 (STARRED), answered on 2016-03-04
Subject: Income Tax Defaulters
Ministry: FINANCE
Asked by: RAYAPATI SAMBASIVA RAO, ADHIR RANJAN CHOWDHURY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO. *132

TO BE ANSWERED ON FRIDAY, THE 4th MARCH, 2016 14TH PHALGUNA, 1937 (SAKA)

## INCOME TAX DEFAULTERS

*132 : SHRI RAYAPATI SAMBASIVA RAO; SHRI ADHIR RANJAN CHOWDHURY;

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government proposes to make public the names of individuals/corporates who have defaulted in paying income tax and if so, the details of such top twenty entities during the last three years;
- (b) whether  Government  hasany  effective  mechanism  to  deal  with  Income  Tax defaulters  and  if  so,  the  details  thereof  along  with  the  action  taken  thereon; and
- (c) whether the Government proposes to take action against those who have failed to  file IT returns; if so, the details thereof and if not, the reasons therefor?

## ANSWER

## FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (c): A Statement is laid on the Table of the House.

**********

## Statement referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. *132 for answer on 4 th  March 2016

(a) The  Income  Tax  Department  does  not  ordinarily  publish  the  names  of taxpayers against whom income-tax arrears are outstanding. However, subject to the specified  conditions,  the  names  of  such  taxpayers  who  have  defaulted  in  paying outstanding income-tax and who have no assets or inadequate assets and/or who are not  traceable  are  published  in  public  domain.  List  of  top  20  entities  whose  names have  been  published  in  public  domain  during  the  last  three  years  is  annexed  as Annexure .

(b) Income  Tax  Department  has  an  effective  mechanism  to  effect  recovery  in cases  of  outstanding  arrear  demand.  In  addition  to  the  measures  prescribed  in  the Income-tax Act, 1961 (the Act) for recovery of taxes, including attachment of bank accounts, recovery from debtors, attachment and sale of immovable properties, etc., the Central Board of Direct Taxes ( CBDT) has also issued detailed guidelines to field formations  relating  to  recovery  of  outstanding  demand,  under  different  situations. Strategy  for  recovery  is  also  prescribed  in  the  Central  Action  Plan  issued  in  the beginning of each financial year and specific targets are set for field units for making recovery  from  arrears  of  taxes.  There  is  also  a  mechanism  for  periodic  review  of high-demand cases by senior officers of the Income Tax Department. Cases involving arrears exceeding Rs.25 crore are monitored by a dedicated Directorate of Recovery under CBDT.

(c) Yes,  Madam.    The  Government,  in  appropriate  cases,  takes  suitable  action against those who fail to file Income Tax Returns.  In case of failure to file return of income, the Assessing Officer issues notice under section 142(1) of the Act directing the taxpayer concerned to furnish the return by the date stipulated therein.  In cases where income has escaped assessment, the Assessing Officer may issue notice under section 148 of the Act for bringing such income to tax. A penalty of Rs.5,000/- under section 271F of the Act is also levied if the return of income is not filed till the end of the assessment year. Further, prosecution under section 276CC of the Act is launched in suitable cases against such persons who wilfully fail to file return of income in due time, which may lead to a sentence of rigorous imprisonment up to seven years.

## Annexure to Statement referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. *132 for answer on 4 th  March 2016

|   Sl. No. | NAME                                                                                         | LAST KNOWNADDRESS                                                                |   AMOUNT OF TAX ARREAR (Rs. in crore) |
|-----------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|---------------------------------------|
|         1 | UDAY M. ACHARYA (LATE) Legal Heirs:- Shri Amul Acharya (Son) and Mrs. Bhavana Acharya( wife) | E/02, ZARANA ENCLAVE AASHA NAGAR, WEHIGHWAY, BORIVALI(E), MUMBAI-400066          |                                779.04 |
|         2 | TOTEM INFRASTRUCTURE LTD.                                                                    | 6, TOTEM HOUSE, DWARKAPURI COLONY, PANJAGUTTA, HYDERABAD                         |                                401.64 |
|         3 | PATHEJA BROS. FORGINGS& AUTO PARTS MFG. CO. LTD.                                             | 20, MIDC BHOSARI, PUNE                                                           |                                224.05 |
|         4 | ROYAL FABRICS PVT. LTD                                                                       | 17-3-516, SHOUKAT MANSION, YAKUTPURA, HYDERABAD.                                 |                                158.94 |
|         5 | GOLDSUKH TRADE INDIA LTD.                                                                    | 3956, NIRWAN BHAWAN, KGB KA RASTA, JOHRI BAZAR, JAIPUR                           |                                 75.47 |
|         6 | BLUE INFORMATION TECHNOLOGY LTD.                                                             | SALAPOSE ROaD, NEAR GPO, AHMEDABAD-380001                                        |                                 75.11 |
|         7 | HOME TRADE LTD                                                                               | 143, MITTAL COURT A WING, NARIMAN POINT, MUMBAI-21                               |                                 72.18 |
|         8 | NEXXOFT INFOTEL LTD                                                                          | 82/F1, SAMANTHA NILAYAM, SRI NAGAR COLONY, HYDERABAD                             |                                 68.21 |
|         9 | KRUSHI VENKATESWARA RAO                                                                      | 6-3-249/4/6, FLAT NO. 305,DHANUNJAYA TOWERS, ROAD NO.1 BANJARA HILLS, HYDERABAD  |                                 49.2  |
|        10 | GENEX TECHNOLOGIES PVT. LTD.                                                                 | 501, SRISHTI TOWERS MADHAPUR, HYDERABAD                                          |                                 47.04 |
|        11 | KHAN GARMENTS                                                                                | 16-4-696, AKBAR BAGH CHANCHALGUDA, HYDERABAD                                     |                                 46.56 |
|        12 | GOPAL KRISHNAJI DHARNE [Late] Legal Heir :Atul Gopal Dharne (Son).                           | SHIRISH DUPLEX, FLAT NO. 2&2A, GALI NO.11, PRABHAT ROAD, ERANDAWANE, PUNE-411004 |                                 38.31 |
|        13 | Late Shri. G. K. DHARNE Legal Heir: Atul Gopal Dharne (Son).                                 | SHIRISH DUPLEX, FLAT NO. 2&2A NO.11, PRABHAT ROAD, ERANDAWANE, PUNE-411004       |                                 38.31 |
|        14 | NANO EXCEL ENTERPRISES PVT. LTD.                                                             | H NO.145/C, GF OPP SAIBABA TEMPLE, VENGAL RAO NAGAR, HYDERABAD.                  |                                 37.48 |
|        15 | PATHEJA BROS FORGINGS& STAMPINGS LTD.                                                        | PLOT NO 2737/1 &2786/1 CHAKAN TELEGAON ROAD CHAKAN, PUNE                         |                                 36.4  |

|   16 | DIGITAL PC TECHNOLOGIES PVT.LTD.   | 8-2-351/W/3A, NAVODAYA COLONY, ROAD NO.3 BANJARA HILLS, HYDERABAD                                                                                                                                                                      |   35.02 |
|------|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|   17 | ATUL JASHVANTRAI MEHTA             | 54/A, 4TH FLOOR HIMATNAGAR, MANDPESHWAR RD. OPP GOKUL HOTEL NEAR MCF, BORIVALI (W) MUMBAI-400092                                                                                                                                       |   33.64 |
|   18 | TUSHAR MUGATLAL SHAH               | 37-11 ANANDYATRI SECTOR 18, KOPARKHAIRANE, NAVI MUMBAI- 400701                                                                                                                                                                         |   32.89 |
|   19 | LIVERPOOL RETAIL INDIA LIMITED.    | 1) VIVA HOUSE-III, OPP. VADILAL HOUSE, NEAR MITHAKALI SIX ROAD, AHMEDABAD. 2) 'A' WING, 4TH FLOOR, MARDIA PLAZA, C.G. ROAD, AHMEDABAD. 3) 303, SIMANDHAR ESTATE, OPP SAKAR-3, ASHRAM ROAD, AHMEDABAD.                                  |   32.16 |
|   20 | JASHUBHAI JEWELLERS PVT. LTD.      | 1) JASUBHAI HOUSE, NR. PANCHVATI, C.G. ROAD, AHMEDABAD. 2) 13-14-15, 1ST FLOOR, MILLENIUM PLAZA, OPP. SWAMIN ARAYAN TEMPLE, JUDGES BUNGLOW ROAD, VASTRAPUR, AHMEDABAD. 3. SURYA COMPLEX, 3RD FLOOR, NR.SWASTIK, CHAR RASTA, AHMEDABAD. |   32.13 |