Karnataka - Bangalore

Court moved for claims against Venkatesh Prasad

Staff Reporter

IT Department has appealed against an order of tribunal

Venkatesh Prasad

BANGALORE: The Income Tax (IT) Department on Thursday moved the Karnataka High Court against an order of the IT Appellate Tribunal overruling an order of the Commissioner of Income Tax who had held that exemption could not be granted to former Test cricketer B.K. Venkatesh Prasad for prize money earnings.

According to the IT Department, Mr. Venkatesh Prasad is an employee of Canara Bank and he is receiving salary from the bank. He was also a former cricket player and was receiving income from the game in the form of tour fee, advertisements, match fees and under other miscellaneous heads.

It said the Assessing Officer (AO) had treated this income and the assessment for 1997-98 came to be completed by an order on January 10, 2001.

The Commissioner of Income Tax (Appeals-5) found fault with the order of the AO, saying that it was erroneous and prejudicial to revenue. He held that the exemption granted to Mr. Venkatesh Prasad in respect of prize money was not correct. The AO's assessment order was overruled and a new order passed on March 27, 2002.

Mr. Venkatesh Prasad appealed against the order of the commissioner to the IT Appellate Tribunal which said that the commissioner was not right in overruling the order of the AO. It allowed the application by Mr. Venkatesh Prasad.

The IT department moved the High Court against the tribunal order.

A Division Bench comprising Justice R. Gururajan and Justice N. Ananda ordered issue of emergent notices and adjourned further hearing on the case.

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