New Delhi, Oct 9: The Delhi High Court on Monday sought reply from the Centre on grant of immunity to seven public sector corporations under the Voluntary Disclosure of Income Scheme (VDIS) following a petition challenging the IT department order on the ground that no government undertaking can escape action from the tax liabilities.A bench comprising Chief Justice Arijit Passayat and Justice DK Jain directed the cabinet secretariat, finance ministry and central board of direct taxes to file an affidavit giving detailed reply how one central public sector undertaking (PSU) and six state PSUs were allowed immunity under VDIS in 1997. The seven PSUs were engaged in rural industry, power, mineral development, industrial development and investment, forest, and engineering, and were given immunity after they paid income tax worth Rs 16.89 crore together as against the liabilities of Rs 49.38 crore, a public intrest litigation (PIL) alleged.
"The PSUs, whether belonging to the Centre or to the states, are required to follow the law in letter and spirit and cannot seek immunity and amnesty under schemes like VDIS for hiding their income," the PIL said.
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