Chennai: Feb 5, 2013
The Income Tax authorities have termed all the activities of the Board of Control for Cricket in India (BCCI) as ‘commercial’ and have reopened old cases to slap taxes worth Rs.2,300 crores for seven years.
The tax authorities have considered almost all the income earned by the board as commercial in nature, particularly after the launch of the lucrative Indian Premier League(IPL) inspite of the Board’s claims that it distributes 70 per cent of its income amongst affiliated associations and players. It has argued that only the amount that is left with it (30 per cent) should be taxed and not the entire income.
The BCCI has already paid taxes worth Rs.1,000 crores and met on Monday to take a decision on what needs to be done for the remaining Rs.1,300 crores.
BCCI president N Srinivasan headed the working committee meeting and disclosed to Mail Today that in July 2012 the tax authorities had reopened old tax assessments.
“When I was Board treasurer (2005 to 2008), our returns were accepted and tax exemption [for BCCI being a
society] was given till 2006. Subsequently, for some reason or the other, all these assessments have been reopened,” Srinivasan had said.
It has been learnt that the BCCI top brass will certainly be taking the opinion of their legal experts on this issue.
(With inputs from PTI)