NAWABSHAH, Sept 12: The Income Tax Department, Nawabshah, has issued an order through which the medical superintendent, People’s Medical College Hospital (PMCH), Nawabshah, has been asked to pay an amount of Rs8,449,981 which had been embezzled from the development and other funds of the hospital during fiscal 1996-97.

Sources in the Income Tax Department told this correspondent that a budget of Rs33,422,000 in development funds and Rs103,498,665 in other funds had been incurred during the autonomous status of the PMCH in 1996-97.

A tax of Rs5,293,553 was to be deducted and deposited in the treasury but only Rs1,550,117 was deposited through a cheque chargesheet. So the tax default amounted to Rs3,743,436.

Four bearer cheques were drawn by the then medical superintendent, PMCH, Hussain Bux Memon.

The first was for Rs5,061,548, the second for Rs392,921, the third for Rs4,644,721, and the fourth for Rs4,657,641.

The payments were made to the contractors after deducting the tax. Various bearer cheques were drawn and paid out in cash. However, the PMC administration failed to justify these payments despite being provided several opportunities by the income tax department.

The income tax department asked for Rs3,743,436 under section 52, and Rs3,718,305 under section 86; the total amount being Rs7,561,741.

The demand was annulled by the commissioner, Income Tax (appeals), Hyderabad.

Later, the deputy commissioner, Income Tax, Nawabshah, Manzoor Jokhio, forwarded a detailed report to the regional commissioner, Income Tax Southern Region, Karachi.

The case was then set aside by the commissioner, Income Tax (Appeals), in which he told the income tax department, Nawabshah, that the demand under section 86 was too little and may be increased.