Ranchi: A day after former Bihar Chief Minister Laloo Prasad was elected as its president, the bank accounts of the Bihar Cricket Association have been seized by the Income Tax (IT) department, allegedly due to non-payment of Rupees 5.8 million in dues.
IT sources said that the BCA owed Rupees 10.4 million in back taxes, of which it had paid Rupees 4.6 million. The accounts, in various banks in Jamshedpur, had been frozen as the remaining Rupees 5.8 had not been paid in spite of repeated reminders, the sources said.
The BCA is reported to have Rupees 18 million in its bank accounts.
The dues date back to 1991, sources in the BCA said. "Most of the cricket associations are exempted from paying Income Tax, as they are treated as non-profit organisations. The BCA got entangled in the tax net because it has not procured the tax exemption certificate from the central board of direct taxes. Our application has been pending for years now," a BCA official said, speaking on condition of anonymity.
"The IT department should have given us an opportunity to present our views before seizing the accounts," the official said, adding that BCA might move the courts against the move.
"We do not find that there was any reason to take such a harsh decision," was all that BCA secretary B N Singh was prepared to say on record.