CAG faults tax exemptions to Tendulkar, Gavaskar

New Delhi
May 14, 2007
Cricket stars Sachin Tendulkar and Sunil Gavaskar have come under the scanner of the Comptroller and Auditor General (CAG), who has found that they have been given a wrong benefit of income deduction as sportsmen which has resulted in a short levy of over Rs 4.42 crore in tax.
The assessments for the relevant years from 1998-99 to 2002-03, in case of Tendulkar, have been reopened.
The assessment for 2004-05 has been selected for scrutiny. The CAG report, which was tabled in the Parliament today, faulted the income tax department for giving incorrect allowance of deduction of income for both the stars for their earnings not from the game but from endorsements and commentating.
In Tendulkar's case, an audit scrutiny of assessment records revealed that aggregate deduction of Rs 8.89 crore was allowed on foreign currency remmitance received by him on account of sports endorsement-- advertisements and publicity activities.
As the income was not derived from his profession, the allowance of deduction was not in order. The CAG said the department's argument that the assessee had derived it in the capacity of artist was not acceptable as he had received it in the capacity of model which cannot be construed as an artist for this provision.

Just wait for Smart Bat...smen!

Melbourne: Australia's World Cup-winning team may not be in need of it but a hi-tech Smart Crikcet Bat to help big hitters like Adam Gilchrist smash the ball even further could be on the market within 18 months.
The Australian-developed, Smart Cricket Bat, has been patented as the world's first bat with active vibration control, a system already in use in baseball bats and tennis racquets, reports 'The Australian'.
The Smart Cricket Bat's key to reducing the "zinging effect" felt by big-hitting batsmen is in its innovative handle. It can reduce vibration by up to 42 per cent.
Melbourne's RMIT University has developed the bat in conjunction with the Australian Research Council, bat manufacturer Kookaburra Sport and sensor company Davidson Measurement.
The $600,000 project uses electro-mechanical sensors and actuators, built into the bat's handle. The technology is used in collaboration with a vibration-absorbing polymeric-based synthetic material.
The materials convert shock waves into heat and dampen vibration by generating waves in the opposite direction.
RMIT project leader Sabu John said the technology had increased the "sweet spot" of the cricket bat - the area in which the batsman experiences least impact when hitting the ball hard - providing greater control. It may also reduce the injuries experienced by top-level batsmen.