Abhishek Singhvi's Income Tax - Did he buy 1250 laptops?
ABHISHEK Manu Singhvi is one of the most expensive lawyers in India. He is also one of the highest Income Tax paying lawyers in India. He now has the dubious distinction of being the lawyer with the highest Income Tax penalty on him.
In June 2013, the Indian Express reported that Singhvi had approached the Settlement Commission with a disclosure of Rs. 11 crore undeclared income and sought for immunity. The Settlement Commission which gave its verdict recently did not accept his declaration and imposed nearly Rs. 60 crores as penalty.
The Jodhpur Income Tax Commissioner found heavy cash withdrawals from his account. Singhvi is said to have claimed that he had purchased laptops worth Rs 5 crore, on which he claimed Rs 1.5 crore as depreciation. The Income Tax department estimated that based on average cost of Rs 40,000 for a laptop, the lawyer would have purchased 1,250 laptops for 14 advocates and professionals hired by him. It is reported that after being unable to furnish documentary proof to back his expense claims, Singhvi had told the Commission that a termite attack on the premises of his chartered accountant in December, 2012, had destroyed all records and expense vouchers and documents.
The Settlement Commission's order is under Stay by the Jodhpur Bench of the Rajasthan High Court.
Singhvi is reported to have stated that the Settlement Commission's order suffers from "legal malice and perversity".
After disclosing an undeclared income of Rs.11 crores, if you are gifted with a penalty of Rs. 60 crores, you certainly cannot be in a thankful mood!