Now, a Rs 18 crore income tax debt haunts Hyderabad Cricket Association

HYDERABAD: There is a plethora of issues troubling the functioning of the Hyderabad Cricket Association (HCA). From office-bearers constantly under the scanner, to lack of funds, the issues are wide-ranging. Add an Income Tax department notice on a massive amount pending, and the whole scenario can rival the most epic disaster flicks.A day after the HCA ombudsman’s order disqualifying the president (G Vivekanand) and secretary (T Shesh Narayan) was suspended by the High Court, it emerged that the cash-strapped state body has not paid income tax to the tune of over Rs 18 crore for the years 2009-10, 2012-13, 2013-14 and 2015-16.

In a letter dated March 14 addressed to the Board of Control for Cricket in India (BCCI), Arvind Kumbhare, assistant commissioner of Income Tax (Exemptions), Hyderabad Circle, said, “A sum of Rs 18,27,91,689 is due from the Hyderabad Cricket Association for the years 2009-10, 2012-13, 2013-14 & 2015-16 on account of income-tax/interest. You are hereby required, under section 226 (3) of  the Income Tax Act, 1961, to pay to me forthwith any amount due from you to or, held by you, for or on account of the said assessee up to the amount of arrears shown above.”

A copy of the letter has also been sent to the HCA. Treasurer P Mahender told Express even the association’s bank account has been frozen by the IT department. The treasurer added that an appellate tribunal has referred the matter back to the assistant commissioner.  “There is a chance of this matter getting resolved in our favour by Tuesday since the tribunal has asked the assistant commissioner to look into the matter once again.” When asked the reason behind the association not paying taxes for the aforementioned years, Mahender said the HCA is not a profit-making body.

“The association runs mainly on the funds it gets from the BCCI. It is not a commercial or a profit-making body. We spend whatever we get from the BCCI. And the BCCI pays tax on the funds that it sends to the association.” With IPL set to begin on April 7, a bank account they can’t access is not what the association was looking forward to. Almost a year after the new administration assumed office, the HCA is yet to hold steady ground.