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CAG blames I-T Dept for Rs 1348 cr tax loss in pharma sector

Dismayed over the functioning of I-T Department, CAG has said non-compliance of procedures for giving incentives to pharmaceutical firms, including Ranbaxy, Dr Reddy’s and Piramal, resulted Rs 1,348.44 crore loss to the exchequer. The national auditor in its report, placed in the Parliament on Friday, mentioned that the I-T Department allowed pharmaceutical companies to claim benefits on R&D expenses without verification. “Also, the assessing officers (AOs) allowed expenses on freebies and gifts to doctors despite such a practice being illegal,” report reads.
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