Reliance Ports Gets Rs 1,767 Crore Irregular Tax Benefits: CAG

Reliance Ports Gets Irregular Tax Benefits

A report by Comptroller and Auditor General of India (CAG) was tabled in the Parliament on Tuesday which stated that there had been an irregularity in allowing deductions by the Assessing Officer which has resulted in tax effect of Rs 2,716.79 crores.

The report mainly focussed on the big corporate houses involved in misusing the provisions of Income Tax deductions in infrastructure projects.

Income Tax Department was also pulled up by CAG for giving tax benefits of Rs 1,767 crore to Reliance Industries. The deduction was allowed to the port and terminal arm of the company on the basis that it was for public facilities.

Rs 5,245.38 was allowed as a deduction to Reliance Ports and Terminals Ltd without examining the eligibility criteria. The deduction was towards the construction of four private jetties at Port Sikka, Gujarat.

As per CAG, since the jetties were not for the public, but for the private use of Reliance Ports, the deduction allowed was unjustified.

The IT department differed from the observations made by CAG and stated that IT Act does not distinguish between ‘public facility’ and ‘private facility’ to claim deductions under Section 80 IA.

IT department further cleared that the use of the jetties was open to other people when RIL Group of companies did not use it, as reported by The Economic Times. The CAG report is based on test audit conducted by CAG between 2012-13 and 2014-15.

CAG has sought help from the Central Board of Direct Taxes (CBDT) to find out which other companies used this facility.

So far, IT department has not submitted any list of other people or corporations who have used these jetties when not in use by RIL.

Deduction u/s 80-IA of Income Tax Act, 1961

The deduction is claimed in respect of profits and gains from industrial undertakings or enterprises which are engaged in infrastructure development.

Probe Suggests Unfair Gains Made By Reliance India Ltd. From ONGC’s Field In KG Basin

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An Army Colonel Is Changing Lives Of Thousand Of People From North-East Using White Bullets

Retiring after spending 32 years in the Indian Army, Col Chris Rego is helping change the destinies of hundreds of children in conflict-affected North East India through his “White Bullets” initiative. With this initiative, he hopes to bring peace and progress to communities across North East India.

Luminouswanted to bring out the Colonel’s story to the world to inspire and motivate others as it believes that education is a strong tool to empower women. It is supporting Col Rego’s cause through an initiative called #Luminaries – the brave people who stand up for causes like girl child education and make a difference in the society.

Col Rego’s journey started over a decade ago in Manipur when a tribal woman knocked on his door pleading for support for her daughter’s education. Touched by the woman’s story, Col Rego and his wife delved into their savings and arranged for the money for the girl’s education. Two years down the line, the woman returned, this time with a small pumpkin and a shawl that she had knitted, and all the money she had borrowed. Moved and realizing that their money could make lives rather than earn paltry interest, Col and Mrs. Rego embarked on a journey to arrange for sponsorship of many more underprivileged children.

Retiring from the Army, Col Rego took over as CEO of Sunbird Trust, a not-for-profit organization which he founded in 2014. The Trust now sponsor over 1,000 children in 21 locations acrossNorth East India. The centre of Sunbird Trust’s activities is at beautiful Ijeirong, Manipur.

Recognizing Col Chris’s immense work, Luminousacknowledged him as their first Luminary. Through this, they hope to bring more power to his elbow in the notable work he is doing. The Luminousteam travelled to remote Ijeirong village and installed solar products. These solar products will help in providing power to the entire campus 24/7 for the very first time.

The Logical Indian salutes Col Christopher Rego for his untiring efforts and leadership. His efforts are already having a cascading effect on people from across India joining the “White Bullets” endeavour. Quite amazingly, education, in itself so empowering, is merely a means to PEACE. We hope the path illuminated by #Luminary Col Rego and his Sunbird Trust team acts as a beacon for others to follow.

If you too have stories of change, share them with us. And if you want to connect with Colonel Rego, click here.