A detailed audit by the CAG of India of some major trusts run by business houses and sports bodies has allegedly revealed misuse of income tax exemptions granted to them. Among them are at least two Tata trusts and a number of state cricket associations.

This is Tata Trust's response to the TOI questionnaire:  "We are not aware of the recent audit of the CAG of India referred to by you. However, we confirm that a tax demand has been raised by the income-tax department against the trust in relation to the subject matter of your query. The department has stayed the recovery of demand against an interim tax payment made by the Trust, pending appellate proceedings. An appeal has been filed with the commissioner of I-T since there is a difference in opinion between the I-T department and the Trust on the legal interpretation of the relevant provisions of the Act. The proceedings are currently ongoing."

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