In a report submitted to the Parliament on Tuesday, the Comptroller and Auditor General of India pointed out that there were a loss of Rs. 1789,22 Crores to the Government because the income tax department had extended the tax benefits and concession to corporates who does not actually deserve such benefits.
The Act allows concessions/exemptions/deductions to the assessee in computing total income under Chapter VI-A and for certain categories of expenditure under its relevant provisions.
“We observed that the AOs have irregularly extended benefits of tax concessions/ exemptions/ deductions to beneficiaries who were not entitled for the same. These irregularities point out weakness in the administration of tax concessions/ deductions/ exemptions on the part of ITD which need to be addressed,” the report said.
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