I-T Dept moves SC against Kiran Karnik

The Income Tax department has moved the Supreme Court alleging that former IT industry body Nasscom chief Kiran S Karnik (pictured) 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 Karnik could not be held guilty of even deemed concealment.

A Bench headed by Justice D K Jain, while posting the matter for final hearing, rejected Karnik's counsel P K Manohar’s plea to allow him to file a counter affidavit.

The Bench said there was no need to file the affidavit keeping in view the nature of the matter.

Seeking imposition of penalties which were deleted by the sectoral tribunal under the I-T Act 1961, the department has alleged that Karnik had failed to prove with evidence that he was under bonafide belief that UAP (Unit Appreciation Plan, an incentive scheme) receipts were not taxable.