The concept of presumptive loss is not a part of income tax laws: CBDT to JPC

In a written correspondence, the Central Board of Direct Taxes (CBDT) has informed the Joint Parliamentary Panel (JPC) examining the 2G case that the concept of presumptive loss used by the national auditor to calculate the losses caused by 2G spectrum allocation is not included in any statutory provision of income tax laws.

Further, CBDT said that the field offices of the Department of Income Tax do not calculate losses on a presumptive basis.

Prior to this, the Comptroller and Auditor General (CAG) of India, Vinod Rai had informed the Committee that the idea of presumptive loss had statutory backing in the Income Tax Act, 1961.

The Committee had approached the CBDT soon after to check the accuracy of this statement.