CBI probe DDCA for tax evasion; Delhi govt demand Rs 24.45 crore
The Central Bureau of Investigation (CBI) have commenced a preliminary enquiry into the Delhi & District Cricket Association (DDCA) over evasion of entertainment tax by selling under-priced tickets for elite hospitality boxes at the Ferozshah Kotla ground.
The Delhi government have also slapped the DDCA with a notice demanding them to deposit Rs 24.45 crore towards entertainment tax, interest and penalty, within the next 15 days.
“The Delhi & District Cricket Association (DDCA) had received Rs 34.96 crores during the years 2003-2005 from several companies on account of pre-booking of space/seats in corporate boxes for the matches to be held at the Feroze Shah Kotla Ground, New Delhi by way of agreements which were made for 10 years/ten International matches,” read the assessment order, which was received from the office of the commissioner, excise for entertainment and luxury tax.
Breakdown
The notice also listed the year-wise breakdown of the amount received by the DDCA—Rs 10.56 crore in 2003, Rs 17.38 crore in 2004 and Rs 7.02 crore in 2005.
“Further since the DDCA did not declare the above receipts which has led to tax evasion of Rs 5.24, 40, 000, a penalty of equivalent amount is also imposed under section 15 (1) of the Act. Now the DDCA is hereby directed to deposit Rs 24, 45, 96, 000/- towards entertainment tax, interest and penalty within 15 days from the receipt of this assessment order failing which necessary action shall be initiated,” it read.
The DDCA, meanwhile, are planning to either appeal to the excise commissioner or moving court.
“The amount of entertainment tax includes penalty and interest. We (DDCA) will either file an appeal with the commissioner (entertainment tax) or file a writ petition in the High Court,” said DDCA treasurer, Ravinder Manchanda.
