Sunday, April 3, 2011

[rti4empowerment] Income Tax waiver of Rs 45 crore, to the International Cricket Council

 



C-4 Usha Niketan,
Safderjung Development Area,
New Delhi-110016
4 April 2011

To
The Central Public Information Officer,
Department of Revenue,
Ministry of Finance,
North Block,
New Delhi

Subject: Demand for public records under RTI Act 2005

Dear Sir,

1. Although nation has every reason to rejoice over the victory of Indian cricket team in the world cup, there is a questionable cabinet decision, where clarity is needed.

2. It has been reported that Cabinet has approved income tax waiver of about Rs 45 crore to the International Cricket Council for the ongoing World Cup, on 31.3.2011. Total receipts of the ICC from the ongoing World Cup are Rs 1,476 crore, while the cost for organizing the event is Rs 571 crore. ICC is earning very high profit and therefore there is no justification of such benevolent gesture.

3. It is reported that some ministers questioned the need for granting the tax exemption to the cash-rich ICC and they were told that the law provided for the same.

4. In my humble opinion, Income Tax exemption to cash rich organization like ICC is totally unjust, as it does not serve any public purpose. Normally tax exemptions are after required amendment to Income Tax Act, following the due process. Propriety of such undue favor is dubious, as it is an arbitrary decision by the Cabinet.

5. I will like to conduct Social Audit of decision-making process that has led to undue favor to ICC. I will like to see the files of Ministry of Finance, Department of Revenue containing following records:

a. Application from ICC requesting for exemption of income tax.
b. Note submitted to cabinet justifying exemption fro income tax and cabinet decision.
c. Relevant law that empowers the Cabinet to authorize exemption from Income Tax, on case-to-case basis.
d. File relating to cases where such exemption has been authorized, during last five years.

6. I may be intimated date, time and place for the scrutiny of aforesaid records at phone number 26505035 or 9871440814. CPIO Department of Expenditure Ministry of Finance is requested to obtain relevant records from Central Board of Direct Taxes, if necessary, to enable me to inspect the decision making process behind exempting ICC from Income Tax.

7. This application is forwarded through Post Master, who is designated Assistant Public Information Officer, after payment of prescribed fees

Yours faithfully,

Dhirendra Krishna

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