In a statement, Khan said that the Government of India had in 1995 agreed to purchase jewellery for Rs 206 crore after the intervention of the Supreme Court. The Corpus was distributed among 114 beneficiaries from the Nizam Family. Around the time the Trustees were to hand over the Jewellery, the Income Tax department raised a total demand of Rs 30.50 crore towards arrears of Income Tax and Wealth Tax.
"The amount was paid from Rs 206 crore on 12.01.1995 which included Rs.15.45 crore arrears of Income Tax and Wealth Tax of which a major portion of this amount later got resulted in Refunds. These Refunds were wrongly adjusted with the instruction of Trustees of the said Trust who never proposed a one-time settlement with the Income Tax then itself. The other amount of Rs. 14.05 crore was kept as lien with the Department for future Tax liabilities in State Bank of Hyderabad, now State Bank of India," said Khan.
"As of date, the dispute is regarding arrears and refunds. According to records, beneficiaries are liable to receive a refund along with a lien amount of about Rs 14 crore but the Income Tax Department states that Rs 8.54 crore is approximately due on us towards taxes. We have been paying our taxes regularly, and this issue would not have dragged for so many years had the Trust acted responsibly and sought a one-time solution," he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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