Thursday, March 14, 2013

Haryana Government’s Forest Corporation Floating Tax Laws

Chandigarh (I-Haryana News): The Haryana Forest Development Corporation, a government of Haryana owned company which is doing its business by floating all the laws of land and rules framed by government using two Permanent Account Numbers (PAN) simultaneously, one for Income Tax and other for the Service Tax returns.

As IHN research team has published its research report on working of Haryana Forest Development Corporation on dated 16/12/2012 under heading “Haryana Forest Development Corporation’s Cash Developing Whom?” This has clearly established that the corporation is openly defying law/rules and encourages corruption prone business practices in its business dealings.

As per information gathered by IHN team through RTI and our field investigation, the Haryana Forest Development Corporation is using two different PAN numbers, one for filing its annual income tax returns and other for service Tax which is punishable under Income Tax Act 1961 which entails punishment of fine of Rs 10000/- and criminal offence under Indian Penal Code section 477A which also entails punishment up to seven Year.

As per records with IHN, the HFDC got it PAN number AAACH3947G in its name giving its Panchkula office address from Income Tax Panchkula Circle, which corporation is using in filing its Income Tax Returns, whereas Corporation falsified its detail and got another PAN number AABCH4009E from Income Tax Circle Gurgaon giving its Sohna office address and using this PAN number for service Tax returns.

As per Income Tax department obtaining or possessing more than one PAN is against the law, for which penalty of Rs.10, 000/- may be imposed and further IT department advises that if one gets more than one PAN card than he/she/it should not use the same and surrender it, in HFDC case it not only secured two PAN number in its names by falsification of its detail but also using it while dealing with two government of India departments i.e. Income Tax and Service Tax Departments which is a criminal offence.

When IHN asked a prominent Lawyer, the Punjab and Haryana High Court Mr. Ravi Sharma about falsification made by HFDC to get two Pan Number and using the same in filing income tax and service tax returns, he clarified that under IT act the wrong act committed by corporation entails punishment of Rs 10000/- for getting two PAN numbers in its name.

 Further Mr. Sharma says, as HFDC not only got two PAN numbers in its name but also using these makes it liable to be prosecuted under section 477A of Indian Penal Code which says, “477A. 2[ Falsification of accounts.-- Whoever, being a clerk, officer or servant, or employed or acting in the capacity of a clerk, officer or servant, willfully, and with intent to defraud, destroys, alters, mutilates or falsifies any book, paper, writing, valuable security or account which belongs to or is in the possession of his employer, or has been received by him for or on behalf of his employer, or willfully, and with intent to defraud, makes or abets the making of any false entry in, or omits or alters or abets the omission or alteration of any material particular from or in. any such book, paper, writing, valuable security or account, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both.”

Explanation.- It shall be sufficient in any charge under this section to allege a general intent to defraud without naming any particular person intended to be defrauded or specifying any particular sum of money intended to be the subject of the fraud, or any particular day on which the offence was committed. Of property and other marks.

The IHN research investigation report raises serious question mark over annuals audits prepared by statutory auditors appointed by Comptroller Accountant General and others as all of them have failed to find out that company is using two PAN numbers for last many years with aim and objective best known to its authorities?

Further, It also manifests the horrifying fact that when a government owned company itself is not honest in complying the laws of land then what we could expect from others. It is a serious act of omission on the part of Haryana Government owned company, the Haryana Forest Development Corporation and it should be handle with iron hand to keep public trust on laws of land.

The last but not the least, an independent investigation by vigilance or any investigation agency would able to bring bundle of loot out of HFDC whose prime objective is to develop forest in the state of Haryana not its certain officers. 

Dinesh Singh Rawat Says: I do agree with research report that the act of omission committed by Haryana government owned company should be deal with iron hand to send signal to public that who so ever commits crime will get punishment.

And  also government undertakings have extra responsibility  to prove in public domains that they are following all laws of land in true spirit as envisioned by Law makers.

CAG should try to look into this matter seriously as this is a question mark over its working