Lok Sabha Question No. 2292 (UNSTARRED), answered on 2016-07-29
Subject: Tax Cases
Ministry: FINANCE
Asked by: ABHISHEK SINGH, RAJENDRA AGRAWAL, MANSUKHBHAI DHANJIBHAI VASAVA, RAMA DEVI, K. GOPAL, PRATHAP SIMHA

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTIONS NO. 2292

TO BE ANSWERED ON FRIDAY, JULY 29, 2016 SRAVANA 7, 1938 (SAKA)

## TAX CASES

2292: SHRI ABHISHEK SINGH:

SHRI RAJENDRA AGRAWAL:

SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

SHRIMATI RAMA DEVI:

DR. K. GOPAL:

SHRI PRATHAP SIMHA:

Will the Minister of FINANCE be pleased to state:

- (a) the details of cases of tax evasion and the amount involved therein, cases prosecuted and that convicted during the last three years and the current year;
- (b) the details of cases pending along with the amount involved therein, for one year, three years, five years and more than five years till date along with the reasons for pendency;
- (c) whether his Ministry has taken any action for speedy disposal of such cases; and
- (d) if so, the details thereof and the achievement therefrom?

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

## (a): Direct Tax

Appropriate  action  against  tax  evasion  is  an  on-going  process.  Such  action  under  direct  taxes laws includes searches, surveys, enquiries, assessment of income, levy of taxes, penalties etc. and filing of prosecution complaints in criminal courts, wherever applicable.

The initial outcome of searches & surveys conducted by the Income Tax authorities during last 3 years & current year are as under:

## Search and seizure

| Financial Year   |   Number of groups searched |   Total assets seized (in Rs. crore) |   Undisclosed income admitted u/s 132(4) of the Income-tax Act, 1961 [in Rs. crore] |
|------------------|-----------------------------|--------------------------------------|-------------------------------------------------------------------------------------|
| 2013-14          |                         569 |                               807.84 |                                                                             10791.6 |
| 2014-15          |                         545 |                               761.7  |                                                                             10288   |
| 2015-16          |                         445 |                               712.68 |                                                                             11066.2 |

| 2016-17*   | 125   | 185.92   | 1748.51   |
|------------|-------|----------|-----------|

## Surveys

| Financial Year.   |   No. of surveys conducted |   Undisclosed income detected (in Rs. crore) |
|-------------------|----------------------------|----------------------------------------------|
| 2013-14           |                       5327 |                                     90390.7  |
| 2014-15           |                       5035 |                                     12820.3  |
| 2015-16           |                       4422 |                                      9654.8  |
| 2016-17*          |                        181 |                                       324.95 |

*Provisional figures up-to 31 st May 2016

Prosecutions are filed for various offences under the Income-tax Act, 1961 as per provisions contained  in  Chapter  XXII.  The  following  is  the  data  with  respect  to  number  of  cases  where prosecutions were filed under Income-tax Act, 1961 and conviction of persons during the last three years and the current year:

| F.Y.                    |   No. of cases where prosecution were filed |   No. of persons convicted |
|-------------------------|---------------------------------------------|----------------------------|
| 2013-14                 |                                         641 |                         41 |
| 2014-15                 |                                         669 |                         34 |
| 2015-16                 |                                         552 |                         28 |
| 2016-17 (upto May 2016) |                                          56 |                          6 |

## Indirect Tax

The Customs, Central Excise and Service Tax authorities investigate the cases of evasion of duty and after completion of the investigations show cause notices are issued to the tax evaders. In cases of offences committed under the Acts, prosecution is sanctioned and complaint is filed in the Court.  The details show cause notices issued and the amount involved therein for the last three years and the current year for Customs, Central Excise and Service Tax is as under:-

|         | Customs (DRI) Cases)   | Customs (DRI) Cases)       | Central Excise    | Central Excise             | Service Tax       | Service Tax                |
|---------|------------------------|----------------------------|-------------------|----------------------------|-------------------|----------------------------|
| Year    | No. of SCN issued      | Amount Involved (Rs Crore) | No. of SCN issued | Amount Involved (Rs Crore) | No. of SCN issued | Amount Involved (Rs Crore) |
| 2013-14 | 862                    | 2735.87                    | 1789              | 5170                       | 4288              | 10705.60                   |

| 2014-15        |   629 |   2370.02 |   1488 |   4360.13 |   3402 |   10905.42 |
|----------------|-------|-----------|--------|-----------|--------|------------|
| 2015-16        |   492 |   2588.96 |   1614 |   3915.33 |   3545 |   14482.2  |
| Upto June 2016 |    96 |    738.19 |    420 |   1510.86 |   1058 |    1654.69 |

The number of prosecutions sanctioned and complaints filed in the last three years  including the current year is as under:-

|                | Customs (DRI cases)           | Customs (DRI cases)     | Central Excise                | Central Excise          | Service Tax                     | Service Tax             |
|----------------|-------------------------------|-------------------------|-------------------------------|-------------------------|---------------------------------|-------------------------|
| Year           | No. of prosecution sanctioned | No. of complaints filed | No. of prosecution sanctioned | No. of complaints filed | No. of prosecuti on sanctione d | No. of complaints filed |
| 2013-14        | 4                             | 4                       | -                             | -                       | -                               | -                       |
| 2014-15        | 2                             | 2                       | 31                            | 22                      | 19                              | 12                      |
| 2015-16        | 9                             | 8                       | 46                            | 25                      | 5                               | 6                       |
| Upto June 2016 | 5                             | 5                       | 9                             | 1                       | 3                               | 2                       |

- (b):      Specific  details,  including  amounts  involved  in  cases,  under  prosecution  are  not  maintained centrally.

## Direct Tax

However,  as  per  data  gathered  from  field  formations  with  respect  to  3869  prosecution  cases pending  as  on  31.05.2014,  it  was  found  that  about  80%  cases  were  pending  in  different  criminal courts for more than 5 years, about 3% cases were pending between 3 to 5 years and approximately 17% cases were pending for less than 3 years.

## Indirect Tax

The details of pendency of prosecution cases pending as on 30.06.2016 are as under:-

|                             |   Total No. of Cases |   Less than year |   1-3 years. |   3-5 years. |   More than 5 years |
|-----------------------------|----------------------|------------------|--------------|--------------|---------------------|
| Customs (DRI cases)         |                  116 |                6 |            5 |            1 |                 104 |
| Central Excise& Service Tax |                 1206 |               13 |          151 |          153 |                 887 |

- (c) & (d):  Several steps have been taken to ensure speedy disposal in pending cases. These steps include  monitoring of  pending  cases  by  senior  officers,  ensuring timely  representation  of  cases by

appointing  suitable  counsel,  capacity  building  of  officers  and  pursuing  with  the  courts  for  speedy disposal.

- *****