It’s official: Taxman says Q did get paid off
Jan. 3: The Bofors ghost returned to haunt the Congress party with an income tax tribunal saying that kickbacks of Rs 41 crore were paid to late Wishveshwar Nath ‘Win’ Chadha and Italian businessman Ottavio Quattrocchi in the Howitzer gun deal and that they are liable to pay tax in India on such income.
The Income Tax Appellate Tribunal has held that Chadha and Quattrocchi had received at least 3 per cent commission from Swedish arms manufacturer AB Bofors in the Rs 1,437 crore Bofors gun deal and directed the tax authorities to investigate the matter afresh to asses the income of Chadha during the relevant period.
Dismissing the appeal of Win Chadha’s son Harsh Chadha against an earlier order of Income Tax Commissioner (ITC) rejecting the first appeal of the Chadhas on the issue, the ITAT said Chadha was liable to pay tax on the commission received from Bofors.
The Tribunal directed the tax authorities to “reopen” the case accordingly to include the income generated by Chadhas through commission from Bofors for reassessment as their income during the relevant period.
“We have no hesitation to hold that assessee (Chadha) received the commission as added by Assessing Officer (AO) as his income for the years 1987-88 and 1988-89,” the Tribunal in a stinging order said while directing the tax authorities to take “appropriate” action in the matter under law.
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