Income Tax raid at IPL headquarters in Mumbai

MUMBAI: A special team of the Income Tax Department on Thursday visited the headquarters of the cash-rich T20 Indian Premiere League (IPL) in connection with an inquiry into financial details and share holding patterns of all the IPL franchisees.

Official sources said the team’s visit was part of a "source probe" that has been initiated by the Department of Revenue in the Ministry of Finance to look into the financing aspects of the multi-crore IPL in the wake of the controversy over the funding of IPL Kochi, the new franchisee. The IPL is housed in the BCCI building at the Wankhede stadium.

Sources maintained that the visit cannot be termed as a "survey or a search" and that it was undertaken under Section 133 (6) of the Income Tax Act which pertains to the power to call for information. The team also sought some documents.

IPL commissioner Lalit Modi said the IT team’s visit was only an inquiry and not a raid.

The I-T department has created a special cell in Mumbai to keep a tab on all income generated by the IPL, the sources said.

It said the probe has been initiated to find out if there is any illegal flow of funds or whether any black money in being pumped into the sporting extravaganza including from foreign shores.

The probe move came even as the CPI-M said the government should inquire into the source of certain funds flowing into the tournament and reconsider whether any tax exemptions or concessions are justified for this commercial enterprise.(PTI)

We would like to hear your comments below: