Income Tax Department: Seized Bank Accounts of Navjot Singh Sidhu

The commissioner of income tax (appeals) didn't allow the expenses he deducted for arriving at the taxable income

Income Tax department seized two bank accounts of Punjab’s state minister Navjot Singh Sidhu for the non-payment of taxes. While the tax dues of Sidhu stand at Rs. 52 lakh, payments that are to be made are in fact the expenses allegedly incurred towards dress expenses (amounting to over Rs. 28 lakh), tour as well as traveling expenses (over Rs. 38 lakh), and expense of salary to the staff (over Rs. 47 lakh). Besides these expenses, Sidhu also claimed to have incurred petrol and diesel expenses to the tune of Rs. 17 lakh.

The tax department observed that the former parliamentarian and state minister failed to submit documentary evidence that include bills or invoices to substantiate his claim during the course of assessment proceedings.

Since the validity of transactions and their authenticity could not be established, 30 percent of the total expenses were disallowed to be deducted from the total income before arriving at the figure of taxable income.

“The assessee had gone in to appeal against the order on January 17 last year, but the Commissioner of Income-tax (Appeals) or CIT (A) passed the order favouring the revenue and not provided any relief to the assessee, as he had failed to provide any documentary evidence in support of his claim,” an official stated.

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