The Central Board of Direct Taxes (CBDT) has come under a cloud after its failure to conduct a probe over the Income Tax Department’s report that a sum of Rs 2 crore was transferred to the account of former Chief Justice of India and National Human Rights Commission chairman K G Balakrishnan’s daughter and son-in-law during 2009-2011. Though the IT Department had asked the CBDT to conduct a detailed probe regarding the money sent to the accounts of K G Bakakrishnan’s daughter Rani and son-in-law Benny, they took no action.
IT Department officials said that they had handed over full details of the monetary transactions that took place between a business group and Rani and Benny.
“We had conducted raids at Gold Souk and office of Arens Group which owns Gold Souk in New Delhi.
“But even after several requests, the CBDT did not carry out any investigation into the matter,” an official of the IT Department said.
As per the reports, it was alleged that seven shops in Gold Souk were handed over to Benny and Rani as ‘gift’. Later they leased the shops back to Gold Souk for which they received Rs 2 crore.
“A detailed probe has to be carried out, for which we had approached Central Board of Direct Taxes.
“But the total lack of any action on their part has made us suspicious,” an IT official said.
It was only after Rani and Benny submitted the explanation regarding the money transactions to the IT Department that they decided to hand over the probe in this regard to CBDT.