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09-11-2013, 03:44 AM #1
Income Tax Department slaps Rs 1,631 cr notice on NMDC
The Income Tax Department has slapped a Rs 1,631 crore demand notice on state-owned National Mineral Development Corporation (NMDC) for assessment years 2006-07, 2007-08, 2008-09 and 2009-10, alleging the company had under-invoiced some export accounts.
Sources said the mining company has paid Rs 1,134.27 crore to the tax authorities so far and contested the claim in respective appellates.
During 2011-12, Income Tax authorities reopened the assessment for financial years 2007-08 and 2008-09, including its incomes of Rs 2,517.21 crore and Rs 278.03 crore, respectively, alleging "under invoicing of exports" and raised tax demand notices for Rs 1255.83 crore and Rs 102.85 crore for those years.
Similarly, last year tax men reopened the company's accounts of assessment years 2006-07 and 2009-10 and raised tax demand notices for Rs 177.90 crore and Rs 94.36 crore for the respective years, sources said.
NMDC has contested these allegations stating that all transactions are transparent as well as routed through bank accounts and filed appeals before appellate authorities, they said.
According to NMDC, it exported 3.26 million tonnes, 3.78 million tonnes, 3.87 million tonnes and 3.43 million tonnes during 2006-07, 2007-08, 2008-09 and 2009-10 respectively, and the total value of exports during those four years have been recorded as Rs 4,382.52 crore.
"Currently, the issue about assessment years 2006-07 and 2009-10 is pending before the Commissioner of Income Tax (Appeals) and the matter related to 2007-08 and 2008-09 is pending before the Income Tax Appellate Tribunal, Hyderabad," sources said.