New Delhi, November 10
Union Finance Minister P. Chidambaram did not rule out the possibility of looking into any tax violations by the 125 Indian companies named by the Paul Volcker Committee report on UN’s oil for food programme in Iraq.
Specifically asked if the Central Board of Direct Taxes will look into the tax records of these companies, Mr Chidambaram replied “it has not happened till now but I am not saying it will not happen.”
The Finance Ministry had earlier said that there was no formal probe but “we will look into the tax returns of the 125 companies in the normal course to see whether there is any violation.” Apparently, this will be independent of the Justice R.S. Pathak Inquiry Authority and the Union Government’s special envoy Virendra Dayal appointed to collect the necessary documents.
A Finance Ministry official had observed that what required to be seen following the Volcker Committee report is whether there has been any tax evasion by understatement of profits by the Indian companies by showing payments made to the Iraqi regime.
The Indian companies named by the Volcker Committee include State Trading Corporation, Kriloskar Engines, Mohan Exports, LT Overseas Ltd, National Electrical Industry and Airpact Exports.
