News Analysis India

Tag: Income Tax Department

  • Income Tax department continues searches at properties, institutes linked to Anil Deshmukh

    By PTI

    NAGPUR: The Income Tax department on Saturday continued for the second day its searches here at properties and institutes linked to former Maharashtra home minister Anil Deshmukh in an alleged tax evasion case, local police officials said.

    After conducting searches at the NCP leader’s houses in Nagpur and Katol and the National Institute of Technology (NIT) at Fetri the day before, IT officials on Saturday reached the Shri Sai Shikshan Sanshta’s office in Ramdaspeth area here.

    Searches at the NIT at Fetri also continued, officials added.

    Teams of the Central Reserve Police Force (CRPF) were deployed for the protection of IT officials.

    The focus of the investigation was a Rs 4.18 crore donation allegedly received by the Shri Sai Shikshan Sanstha, sources said.

    The Enforcement Directorate (ED) had alleged earlier that the amount was deposited in cash with four Delhi-based companies and these firms then routed it to Shri Sai Shikshan Sanstha Trust, a charitable trust controlled by Deshmukh and his family.

    The 71-year-old leader is also being probed by the Central Bureau of Investigation (CBI) in a corruption case related to allegations of bribery made by former Mumbai Police commissioner Param Bir Singh.

  • Delhi HC seeks Income Tax Department stand on Newslaundry’s plea concerning leakage of seized material

    By PTI

    NEW DELHI: The Delhi High Court Friday sought Income Tax Department’s stand on a plea by online news portal Newslaundry and its co-founder Abhinandan Sekhri to restrain any leakage of the material seized during a survey operation held earlier this month.

    A bench of Justices Manmohan and Navin Chawla granted time to the department’s counsel to seek instructions on giving an undertaking against any leak and asked that the concerned officer join the proceedings on the next date of hearing i.e. September 21.

    “Ask your client (to join proceedings) so that we can close it then and there. Let him be by your side…If he gives a statement, we can put a quietus to the matter,” said the bench to the lawyer who asserted that the fear of leak was a ‘bald apprehension’.

    Data of thousands of assessees is in safe custody of the department and it can be used only in accordance with law, said counsel for the department Ajit Shamra.

    During the course of the hearing, the bench orally observed, “Normally, no one’s data should be leaked” as it is “ethically, morally and legally” wrong.

    “We have seen it on channels, people’s data that has been seized is being displayed…It should not happen,” it remarked.

    Senior counsel Siddharth Dave, appearing for the petitioners, said that four notices under the Income Tax Act were issued to his client and a survey was held in the news portal’s premises on September 10, during which several devices, including a mobile phone and a laptop belonging to the petitioner co-founder, were seized by the IT authorities, which contained several information which were of no relevance to any income tax proceedings.

    The data may contain personal photos and information pertaining to investigative stories, he said.

    The senior lawyer argued that any data breach would be in violation of right to privacy and therefore a direction should be passed to the IT authorities to not leak any data and delete whatever is of no relevance to the proceedings.

    It was also contended that any seizure during a survey operation was beyond the scope of survey and that no “hash value” of the seized data was given.

    “Please direct them not to leak seized data collected in this purported garb of a survey and allow me to delete (non I-T related) data,” the senior lawyer submitted.

    In the petition filed through advocate Nipun Katyal, the petitioners have said that the income tax officers and authorities do not have any power to interrupt the ordinary peaceful citizens of the country in any manner they like by utilizing the large powers given to them, without keeping strictly within the four corners of those large powers.

    “The Petitioners are heading a news organization, the Petitioners herein have sources, contacts and other information on the digital machines. It is the fiduciary duty of the Petitioners to protect them and keep it confidential.

    “It is further submitted that the legal communication regarding existing cases is present in the personal laptop and phone of the Petitioners. If in any circumstances, the leaks are committed, it shall be a clear breach of the attorney client privilege as well as whistleblowers confidentiality,” the plea says.

  • Income Tax Department conducts raids against former Maharashtra Home Minister Anil Deshmukh

    By PTI

    MUMBAI: The Income Tax Department on Friday conducted searches at multiple premises linked to former Maharashtra home minister Anil Deshmukh in connection with a tax evasion investigation, official sources said.

    The raids are being carried out in Mumbai and Nagpur (Maharashtra) as well as Jaipur in Rajasthan, they said.

    The 71-year-old former minister is being probed by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) too on charges of alleged money laundering and payment of purported kickbacks in the police establishment of Maharashtra.

    The ED case against Deshmukh, who was earlier the home minister in the Maha Vikas Aghadi government, and others came after the CBI booked him in the corruption case related to allegations of at least Rs 100 crore bribe made by former Mumbai Police commissioner Param Bir Singh.

    Deshmukh had said that Singh made the allegations against him after he was removed from the post of Mumbai Police Commissioner.

    He has refused to comply with at least five summons sent by the ED for questioning in the case and has instead suggested for the agency to interact with him over an online link saying he was a “law abiding citizen.”

    Deshmukh resigned as Maharashtra home minister in April after the allegations surfaced following the recovery of an explosives-laden SUV parked near the residence of Reliance Industries chairman Mukesh Ambani, a case in which suspended Maharashtra policeman Sachin Waze was arrested.

  • Income tax portal’s tech issues being progressively addressed; 1.19 crore ITRs filed: CBDT

    #39;Of these, over 76.2 lakh taxpayers have used the online utility of the portal to file the returns, #39; the Central Board of Direct Taxes (CBDT) said in a statement.

  • I-T department detects Rs 50 crore tax evasion after raids on Jharkhand realty group

    By PTI
    NEW DELHI: The Income Tax Department has detected tax evasion of over Rs 50 crore after it raided a “prominent” Jharkhand-based group dealing in building construction and real estate, the CBDT said on Thursday. The searches were carried out on Wednesday at 20 premises located in Ranchi and Kolkata.

    The CBDT said in a statement issued here that “unexplained” cash of Rs 50 lakh was seized during the raids and three lockers have been placed “under restraint.”

    “Preliminary evidence found suggests evasion of tax of more than Rs 50 crore.” “Post-search investigations are going on and tax evasion figures may go up substantially,” the CBDT said without identifying the group. The Central Board of Direct Taxes (CBDT) frames policy for the Income Tax Department.

    During the raids, the statement said, it was found that the group was “not maintaining regular books of account.” Hence, the audit certificates and statements submitted to the tax department are “under investigation for genuineness.”

    “As per details found during the search operation, it was seen that the group has been undertaking huge outside-the-books transactions in the building construction business and a large portion of sale proceeds is received in cash which remains unaccounted.”

    “Part of the cash generated has been brought into the business through bogus share capital and unsecured loans from shell companies,” it alleged.

    It said “at least 8 shell companies” were involved and relatives and persons of “no means” were appointed as directors of these ‘companies’ which existed only on paper.

    “These ‘directors’ have admitted that they were only dummy directors and would sign wherever the group told them to do so.”

    “Transactions of unsecured loan and bogus share capital to the tune of Rs 25 crore have been detected.” “Shell companies investing money in the group have been found to be non- existent in Kolkata,” the statement alleged.

    The group, it said, has purchased 1,458 acres of land on the outskirts of Ranchi and is constructing residential apartments there.

    “It was seen that the land has been registered at a consideration of one-tenth of the value for stamp duty purposes.”

    “Brokers have been paid fee in cash running into crores,” the CBDT claimed. Other expenses with regard to the purchase of land also are in crores, it said.

    The sellers of the land were also raided and they have admitted that more than 25 per cent of land included in the registered document is forest land, not owned by them and for which they have received no consideration, it claimed.

    “Evidence gathered during the search established that the group had fraudulently got more than 300 acres of forest land registered in its name,” the statement said.

  • Honest taxpayers deserve to be recognised for paying due share of taxes: Nirmala Sitharaman 

    By PTI
    NEW DELHI: Finance Minister Nirmala Sitharaman on Saturday said honest taxpayers deserve to be recognised for dutifully paying their due share of taxes and appreciated the Income Tax Department for successful implementation of various reforms.

    In her message to the I-T Department on the 161st anniversary of Income Tax Day, she complimented the department for continuing to work towards simplifying its procedures and processes, and making its functioning hassle-free, fair and transparent.

    “The minister observed that the honest taxpayers deserve to be recognized for the contribution they are making to the progress of the nation by dutifully paying their due share of taxes. She also lauded taxpayers for discharging their compliance obligations despite the difficulties caused by the pandemic,” an official statement said.

    Minister of State for Finance Pankaj Chaudhary observed that most of the processes and compliance requirements have been shifted to online platforms and the need for taxpayers to physically visit tax offices has been eliminated or minimized.

    He highlighted the fact that the interaction with taxpayers is now characterized by a spirit of trust and respect, relying more on voluntary compliance.

    Revenue Secretary Tarun Bajaj also complimented the department for having done well in adapting itself to the emergent changes in the economy and having been able to achieve a healthy growth in tax collections.

    He also appreciated the initiatives undertaken by the department to reorient its approach towards revenue collection, making its functioning trust-based and taxpayer-centric.

    Central Board of Direct Taxes (CBDT) Chairman J B Mohapatra lauded the tax officers for their collective efforts and effectively fulfilling their twin role as the revenue earning arm of the nation and provider of taxpayer services.

    Referring to the larger and far-reaching policy measures like ‘Honouring the Honest’, Faceless Regime and adoption of the Taxpayers’ Charter, he noted that these initiatives have made the departmental functioning more transparent, objective and taxpayer-friendly.

  • Premises of Congress MLA Dharam Singh Chhokkar searched by ED

    By Express News Service
    CHANDIGARH:  The sleuths of Enforcement Directorate and Income Tax Department searched the premises of Congress MLA Dharam Singh Chhokkar and his family members here, Samalkha, Gurugram, Faridabad and Hisar.

    Sources said sleuths started the searches at twelve places around 6 am.

    These included the Samalkha MLA’s flat at Sector 2 in Chandigarh, his residence, a petrol pump at Sai Enclave and a showroom in the grain market at Samalkha besides some properties in Gurugram.

    Searches were also conducted on the premises of the legislator’s close relatives and business partners. The searches were conducted over suspicion of amassing of disproportionate assets.

  • IT Dept raids at 18 locations owned by Congress MLA Nilay Daga’s family across three states

    By Express News Service
    BHOPAL: Extensive searches by the Income Tax Department started on Thursday at the premises of edible oil business group owned by the family of Madhya Pradesh Congress MLA Nilay Daga in three states.

    The searches began at around 18 locations in Betul and Satna in BJP-ruled MP, Mumbai and Solapur in Maharashtra and TMC-ruled West Bengal’s capital Kolkata.

    In Betul, the home district of the powerful Daga family in Madhya Pradesh, the searches were carried out at around seven locations by the IT department team, which went in the garb of a wedding procession on the raided locations. The raided locations included the family’s residential premises, factories and also a school in Betul district.

    Searches also started at the group’s oil unit in Satna district of MP, besides factories in Solapur and the corporate office and related premises in Mumbai. An associated search was also carried out in one premise related to the group in Kolkata.

    According to key sources in the IT department, the business group is primarily engaged in the business of solvent extraction, refining of edible oils, oil seeds development and manufacture of animal feeds, besides trading of de-oiled cakes.

    The Betul Oil Limited Group is one the leading integrated processors of soybean and sunflower seeds in the country, having solvent extraction units at Betul and Satna in MP and Solapur in Maharashtra.

    The business group also operates two wind energy power generation units in Maharashtra’s Dhule and MP’s Dewas. The group’s products are marketed across 17 states in the country, sources added.

    While the searches are likely to continue for at least the next couple of days, on the first day, the IT department sleuths have seized some incriminating digital records, which could lead to significant unaccounted income.

    Sources added that the ongoing searches have also led to documents pertaining to the Group’s key players being into credit business and real estate trade. The searches have also led the income tax sleuths to at least five bank lockers so far. 

  • Income tax department raids stock broking company, captures black money of 365 crores

    The Central Board of Direct Taxes conducted a raid on the Kolkata-based real estate and stock broking group. Income Tax Department has detected undisclosed income of Rs 365 crore. CBDT said, total income of Rs 365 crore has been ascertained so far. The companies have so far accepted undisclosed income of Rs 111 crore. After the search, Rs 3.02 crore of unaccounted cash and Rs 72 lakh ornaments were also seized. This action of the Income Tax Department was based on the Department’s database, analysis of financial accounts of these companies and market intelligence. During the investigation, it has also been found that the people of the company group have also been using mask companies to move their own unaccounted amount.

  • Income Tax Dept records Robert Vadra’s statement in property case

    By ANI
    NEW DELHI: Income Tax Department is recording the statement of Robert Vadra, the son-in-law of Congress President Sonia Gandhi, in connection with Benami Property Case, sources said on Monday.

    I-T department and Enforcement Department is probing Vadra under the provisions of Prevention of Money Laundering Act (PMLA) pertaining to allegations of money laundering in the purchase of a London-based property at 12, Bryanston Square.

    Earlier ED has also recorded the statement of Vadra in connection with assets and properties outside India. In his recorded statement he denied the ownership of properties in London in question. He also denied assets outside India.