NEW DELHI: The ruling BJP on Tuesday came out all guns blazing against Congress leader Abhishek Manu Singhvi after reports about the Jodhpur High Court order that stayed the operation of the Income Tax Settlement Commission (ITSC) penalty of over Rs 56 crore against him. The BJP launched a scathing attack on Singhvi saying his case is a classic expression of how black money is being generated in India, and that too by none other than tall leaders of the Congress.
“The Settlement Commission has added about `92 crore to the professional income of Singhvi over three years. Why was Mr Singhvi not declaring this income?” said BJP spokesperson Sambit Patra.
According to sources, Singhvi moved the ITSC in 2013, contesting the Income Tax department’s assessment of his tax liability and had sought immunity from penalty and prosecution. The sources said the department had served notices to Singhvi in 2011 for undeclared income after conducting a probe, which was triggered by a complaint and report by the Financial Intelligence Unit. The notices had estimated `22.86 crore as Singhvi’s additional income for just the 2009-2010 financial year which he had contested. The department had also informed the ITSC that his additional income was much more than actually declared. The ITSC order came in September after which Singhvi moved the Jodhpur High Court, which stayed the order’s operation in October.
Interestingly, Singhvi had told the ITSC that he could not produce documentary evidence to back his expenses claim because termites in his chartered accountant’s office had destroyed all records and expense vouchers.
A statement issued on behalf of Singhvi argued that “well before any coercive steps were taken by the department, the assessee’s chartered accountant had reported destruction of records over two years ago. The report had been independently filed and recorded by the police and has not been displaced in any manner, even in the SC order.” “The SC (Income Tax Settlement Commission) has no power to levy penalty at all,” the statement added.