The Comptroller and Auditor General (CAG) has in its latest audit report on direct taxes revealed irregularities involving under-charge of tax totalling Rs 1,572 crore in at least 860 cases.
The irregularities pertained to computation of business income, capital expenditure and while making provision for depreciation. The report, submitted before Parliament on Friday, said during 2007-08, Rs 216 crore was recovered at the instance of audit in as many as 1,474 cases.
The report expresses concern at number of pendency in cases under scrutiny and summary assessments. Cases of scr-utiny increased from 1.91 lakh in 2003-04 to 5.91 lakh in 2007-08. Those under summary assessments rose from 56 lakh to 185 lakh during the same period.
The uncollected revenue was over Rs 1.24 lakh crore in respect of corporate and income taxes at the end of 2007-08, the report said. "Uncollected amount of Rs 1,24,274 crore in respect of corporation and income tax comprised demand of Rs 86,859 crore of earlier years and current demand of Rs 37,415 crore for 2007-08," said the report.
It said in terms of corporation tax the arrears increased to Rs 68,662 crore in 2007-08 from Rs 55,098 crore in 2005-06, while income tax arrears increased to Rs 55,612 crore in 2007-08 from Rs 40,289 crore.
During 2007-08, against Rs 36,057 crore certified by recovery officers for recovery, only Rs 8,612 crore (24%) could be recovered. There was an improvement in recovery from 14% in 2005-06 to 24% in 2006-07 and a marginal decline to 24% in 2007-08.