₹3,500 crore owed by 96 tax defaulters unlikely to be recovered

Ninety-six defaulters owe ₹3,493.24 crore in tax money all over India. This list comprises of individuals as well as companies who have defaulted and a majority of them are bankrupt and not a single rupee can be recovered.

Out of the 96 defaulters, Hyderabad region of the Income Tax department has 30 defaulters who owe ₹1,021.30 crore to the department. Though this region has the maximum number of defaulters, in money terms it is the Mumbai region from where the maximum ₹1,062.89 crore is pending from 12 defaulters.

The maximum amount pending from an assessee is from Mumbai’s Uday Acharya (deceased) and his family. The department has assessed his returns for the assessment years 1997-98, 1998-99, 1999-00, 2000-01, 2006-07, 2007-08, 2008-09 and he owes ₹779.04 crore. The assessee has been declared bankrupt and has also passed away. Thus, the department can only have the money pending on the paper and nothing can be recovered from this assessee.

Following Uday is Hyderabad-based Totem Infrastructure Ltd which owes ₹401.64 crore to the department. “The amount pending is based on the assessment of its returns for the assessment years 2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12. Basically, the company was involved in building contracts and went bust following which we included this assessee in the defaulter’s list,” said a senior Income Tax department official.

Uday Acharya has not paid income tax from 1997-98 onwards. “In this case, the assessee died and the department would have followed it up with his family members. So, the department has included Uday as well his sons in the defaulter list,” said chartered accountant and ICAI council member G Sekar.

As per the Income Tax Act 1961, the department has powers to recover pending amount to the department under Sections 222, 227, 229 and 232.

In view of multiple cases of assessees not being traceable, which has reduced chances of recovery, the Central Board of Direct Taxes has provided the PAN number and the last-known address of these defaulters so that the public could give information about their whereabouts.

“We have taken several steps soon after finding that an assessee has not paid the tax. First, we send reminders to the address and then send our officials to speak to the assessee and try to attach some of their assets. When all doors are closed, we include the assessee in the defaulter list,” said the official.

“We have several senior officials in the recovery wing. These officials have powers to attach movable and immovable assets as well as personal assets like jewels to adjust towards the tax payment pending to the department. If a person or a company does not have any of the above, the assessee will be declared bankrupt. But the department will declare bankruptcy only if the assessee produces the required notice,” said the official.

Each year the defaulter list is being updated and at present the total money pending from the defaulter list is ₹3,493.24 crore. In the defaulter list, majority of assesses are mentioned as non-traceable followed by bankruptcy.

There are names in the defaulter list who has to pay crores as income tax but the assessee does not have a permanent account number (PAN). One such assessee is United Credit Investments based in Bengaluru. This company has a demand of ₹10.75 crore for the assessment years 1987-88, 1988-89, 1989-90, 1990-91, 1991-92, 1992-93, 1993-94, 1994-95, 1995-96, 1996-97 and 1997-98. But this company is an Income Tax assessee without a PAN. There are few other individuals and companies who are assessees but without a PAN.

Pune region has just 4 asseesses who are in the defaulter list but the total amount pending from these 4 is ₹337.04 crore. Patheja Bros Forgings and Auto Parts Manufacturing based in Pune has to pay ₹224.05 crore for the period 1994-95, 1995-96, 1996-97, 1997-98 and 1998-99.

Ahmedabad region of the department has 21 assessees who are in the defaulter list. The total money pending from these 21 assessees is ₹512.59 crore.