Tax row haunts Karnik

The income-tax department has moved the Supreme Court alleging that former IT industry body Nasscom chief, Mr Kiran S. Karnik, had evaded tax to the tune of Rs 3.71 crore in 2002-03 when he was heading infotainment company Discovery Networks.
The tax authorities challenged a Gujarat High Court judgement that had dismissed their appeal holding that Mr Karnik could not be held guilty of even deemed concealment.
A bench headed by Justice D. K. Jain, rejected Mr Karnik’s counsel Mr P.K. Manohar’s plea to allow him to file a counter affidavit.
Seeking imposition of penalties which were deleted by the sectoral tribunal under the I-T Act 1961, the department has alleged that Mr Karnik had failed to prove with evidence that he was under bonafide belief that UAP (Unit Appreciation Plan) receipts were not taxable.
According to the revenue officials, the assessee had not concealed his particulars of his income but had furnished inaccurate particulars of such income.
Mr Karnik, as the managing director of Discovery Networks that owns Discovery channel, had received around Rs 1.30 crore and Rs 3.72 crore for 2001-02 and 2002-03, respectively, from US-based parent of the Indian firm.

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