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CBDT refutes Media Report

 

Ministry of Finance

CBDT refutes Media Report

Dated: 22 MAR 2019

A search action under Section 132 of the Income-tax Act, 1961 was carried-out on Sh. D.K Shivakumar and Group of Cases on 2nd August, 2017 by the Income Tax Investigation Directorate of Karnataka & Goa. A large evidence of incriminating material against Shri D. K Shivakumar and his company were found.

During the search, some loose papers were given to the raiding party. They were a xerox copy of Karnataka Legislative Assembly, Legislator’s Diary pages of 2009 with details of numerical entries against some individual names. The original of these documents was never given.

The same was confronted to Sh. D. K. Shivakumar in a statement recorded under section 131 of the Income-tax Act, 1961 on 19/10/2017.

Ø  In response, he stated that this was a copy of diary, written by Mr. BS Yeddyurappa, and the payments paid on behalf of Mr. BS Yeddyurappa to legislators, and received from various leaders, MLAs, Ministers when they were in power.

Ø  On being asked as to how he got possession of the said loose sheets, in response, Sh DK Shivakumar stated that, being a politician, he procures information about other parties, leaders and members and as the said loose sheets contain political information, he cannot disclose the source of information. Further, he also stated that he keeps getting such information from the general public.

Ø  He also stated that he did not know the time period in which the said transactions have taken place and that he did not have the originals of the said loose sheets.

Ø   In response to the question as to why the said matter was not brought to the notice of ACB or Lokayukta of Karnataka, Sh D. K. Shivakumar stated that as he did not know about the genuineness of the said loose sheets, he did not inform the same to enforcement agencies.

Ø   He further stated that the handwriting in the loose sheets could be of Mr. B.S. Yeddyurappa on the basis of comparison between various documents written by Mr. BS Yeddyurappa and the handwriting in the loose sheets.

The said seized material and the statements of Sh DK Shivakumar were confronted to Sh B. S. Yedyurappa on 25.11.2017 in a statement recorded under section 131 of the Income-tax Act, 1961.

Ø  He stated that he was not in the habit of writing a dairy and that the loose sheets in question were not in his handwriting. He denied his handwriting and signatures on the loose sheets.

Ø  Also, as the handwriting did not belong to him, he cannot have any knowledge about the contents of the said loose sheets.

Ø   He further stated that contents of the loose sheets were false and fabricated and his name has been used to malign his political career.

Ø   He also provided a sample of his handwriting in order to verify the genuineness of the said loose sheets. Further, he also stated that the fabricated loose sheets were politically motivated with an intention to tarnish his political image. 

In view of the said facts, an enquiry was made to The Director, Central Forensic Science Laboratory, Directorate of Forensics Science Services, Ministry of Home Affairs, Government of India, Amberpet Post, Ramanthapur, Hyderabad - 500013, Telangana on availability of Document Analysis and the procedure, time period for the same on 18.04.2018.

In response, CFSL, Hyderabad replied on 24.04.2018 vide letter No.CFSL(H)/Documents/2018/410 dated 24.04.2018 that the examination of handwriting and signatures is carried out in the said laboratory and that all the disputed documents are to be sent in original. No originals were given by Shri D. K. Shivakumar.

It is clear that for a forensic analysis of the disputed writings to establish its evidentiary value, originals of the same are required. All efforts have been made by the Income Tax Office concerned to procure the originals of the disputed writings. However, the details about the place and custody of the original writings and, if the original writings exist, are not available. The same loose sheets prima-facie appear to be of a doubtful nature and were given by the person who was being raided for tax violations.

DSM/RM
(Release ID: 1569275) 

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Income Tax Department continues to hit at terror financing activities in J&K Region

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 15th March, 2019

PRESS RELEASE

Income Tax Department continues to hit at terror financing activities in J&K Region

Income Tax Department conducted search actions at 5 locations in the Kashmir Valley on 14th March, 2019. Few places in Jammu were also searched. These actions  are part of the Department’s continued drive against use of black money by disruptive elements in the State. The operations also send a message of deterrence and obviation to those intending to vitiate the democratic process of free and fair elections.

The preliminary results are extremely encouraging. In the aggregate, undisclosed cash of Rs. 1.44 crore and unaccounted jewellery of Rs. 2.48 crore has been seized. The documentary evidence collected and examined so far shows undeclared property transactions of more than Rs. 41 crore, primarily in the Kashmir valley and concealed financial transactions of nearly Rs. 17 crore. Number of hard disks have also been seized that prima facie corroborate the evidence found in the seized documents. Their analysis is likely to lead to identification of third parties that have indulged in property and financial transactions that have been deliberately concealed from the tax authorities.

One operation was against a prominent LOC trader who apparently used proxies to conduct large cross-LOC trade in the past 6 years. Large undisclosed profit earned by him has been diverted to allegedly suspect elements in the Valley. During the action, documents of transactions in the names of some of the proxies were found. Investigations are in progress to determine the clandestine cross-LOC trade conducted by the tax evader through the Custodian of the Trade Facilitation Center, Srinagar.

 In another operation, a big land and property broker of Srinagar was also searched on the same day. He allegedly facilitates absorption of unaccounted cash of undesirable elements of the valley in real estate and immoveable properties in and around Srinagar. Large cache of documents that show property transactions in cash on power of attorneys have been found from his residence. Evidence of series of land transactions have been unearthed by the Department revealing that Rs. 4.21 crore earned from the same was completely concealed from the tax and other regulatory authorities. It is also a matter of record that the tax evader has never filed any income tax return. 2 hard disks have also been seized from his residential premises, which apparently contain details of transactions in property undertaken by different persons through the tax evader. Follow up actions shall be taken up against both sellers and buyers of these properties, who have not shown the source of income to buy the property and neither paid any capital gains tax on its sale.

The Department also covered a hotelier and a retailer of liquor in the Kashmir valley. Evidence found in search shows that he has been earning large undisclosed profits on sale of liquor as well as from his hotel business and he has not shown cash receipts in his books of account. Hard disks containing digital evidence have been seized which support the charge of deliberate attempt to evade tax and earn large income in cash that is willfully and consciously kept outside the tax net.

The family business of another popular business group in Jammu and Katra also came under the scanner. The search action shows that the group has routinely conducted a significant proportion of their business in unaccounted cash and the money so earned has been round tripped in real estate deals in Jammu and Katra. The untaxed proceeds have also been used to construct a retail mall in Jammu and to acquire expensive jewellery for the family members.

(Surabhi Ahluwalia)

         Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

 

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Income tax exemption for gratuity enhanced Up to Rs. 20 lakhs

 

Press Information Bureau 
Government of India
Ministry of Labour & Employment

07 MAR 2019

Income tax exemption for gratuity enhanced Up to Rs. 20 lakhs

Ministry of Finance has enhanced the income tax exemption for gratuity under section 10(10)(iii) of the Income Tax Act, 1961 to Rs. 20 lakhs.  Shri Santosh Kumar Gangwar, Minister of State for Labour and Employment has expressed hope that this would benefit those employees of PSUs and other employees not covered by Payment of Gratuity Act, 1972 and has thanked the Finance Minister for enhancing the exemption limit.

The ceiling of Gratuity amount under the Payment of Gratuity Act, 1972 has been raised from time to time keeping in view over-all economic condition and employers capacity to pay and the salaries of the employees, which have been increased in private sector and in PSUs.  The latest such enhancement of ceiling of gratuity was made vide Government of India Notification dated 29.03.2018 under which the gratuity amount ceiling has been increased from Rs.10 lakhs to 20 lakhs w.e.f. 29.3.2018.

*****

RCJ/SKP/IA

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ITAT : Mere non production of Director of share holder company ipso facto cannot justify straight adverse inference u/s 68

 

Click here to read and download ITAT order copy reported in [TS-8200-ITAT-2018(Delhi)-O]

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TIEA between India and Brunei signed on 28.02.2019

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

 New Delhi, 28th February, 2019

PRESS RELEASE

TIEA between India and Brunei signed on 28.02.2019

The Government of Republic of India and the Government of His Majesty the Sultan And Yang Di-Pertuan Of Brunei Darussalam signed an Agreement for the Exchange of Information and Assistance in Collection with respect to Taxes (TIEA) on 28th February 2019 at New Delhi. The Agreement was signed by Mr. Pramod Chandra Mody, Chairman, Central Board of Direct Taxes on behalf of India and Dato Paduka Haji Sidek Ali, High Commissioner of Brunei Darussalam to India on behalf of Brunei Darussalam.

The Agreement enables exchange of information, including banking and ownership information between the two countries for tax purposes. It is based on international standards of tax transparency and exchange of information and enables sharing of information on request as well as on automatic basis. The Agreement also provides for mutual assistance in collection of tax revenue claims between both countries.

The Agreement will enhance mutual co-operation between India and Brunei Darussalam by providing an effective framework for exchange of information in tax matters which will help curb tax evasion and tax avoidance.

(Surabhi Ahluwalia)

 Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

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