CBDT gets down to build office in Mumbai after PM's Office intervenes

Total estimation for construction would range between Rs 200 cr and Rs 250 cr

The Prime Minister’s Office has taken cognizance of the income-tax (I-T) department’s expenditure on office spaces in Mumbai and sought immediate action on expediting matters.

Subsequently, the Central Board of Direct Taxes (CBDT) constituted a task force to oversee the construction of the building on the land lying vacant at Nariman Point. 

The task force has been mandated to complete the construction by June 2020. The move follows an objection raised by the Comptroller and Auditor General of India, which highlighted the tax department spent Rs 1,000 crore on rent despite possessing a huge land bank at Nariman Point since the 1990s. 

The tax department was given the land, measuring 2,786 square metres, with a minimum capacity of 100,000 square feet, in 1992. 

According to the directive issued by the CBDT on April 11, this task force will work under the chairmanship of a principal chief commissioner of I-T Mumbai, and three other members (chief commissioner and additional chief commissioner level).

The task force has to liaise with the Central Public Works Department (CPWD) and Integrated Finance Unit to initiate the work. The task force has been asked to assist the CPWD in getting clearances from the departments concerned under both the central and state governments. “The task force shall submit a weekly progress report to the Board. The taskforce will ensure that the project is completed by June 2020,” reads an internal communication to the I-T department. 

Business Standard reported on April 9 the objections raised by the government audit office. 

Sources say the Indian Audit and Accounts Service had in a draft report highlighted the delay and negligence by the department, which led to a significant loss to the exchequer, and sought an explanation for not acting upon it. After the audit office’s objection, the Mumbai tax department is learnt to be preparing a preliminary estimate to construct an office building. The task force will vet the proposal, which will go to the CBDT for approval. The new proposal might estimate the cost at Rs 200-250 crore. 

“Construction would resolve the space crunch issue the tax department has been facing for long. However, the completion of the work before the deadline would be challenging,” said an I-T official privy to the development.