NEW DELHI: The temptation to dodge enforcement agencies post-demonetisation gave birth to several modus-operandi to keep high -value currency, that was turned into piece of papers on November 8 last year, relevant.
The Income Tax department, probing suspicious cases, has learnt several individuals and companies had shown inflated sales immediately after demonetisation of Rs 1,000 and Rs 500 currency notes and filed revised returns by claiming error in earlier assessment. According to sources, such cases have come up in Delhi, Mumbai, Kolkata and Jaipur where those who allegedly made payments to purchase stocks from individuals have no source of cash in hand and the entire process was fabricated to legalise demonetised currency.
“They had filed revised returns as a cover up to later explain the cash deposits in bank accounts. Notices have been issued and we are preparing to take action as per tax rules,” sources said.
The Income Tax authorities, in some cases, have already questioned the individuals, who allegedly purchased stocks after demonetisation, to investigate the source of cash. In the majority of transactions, they found buyers had no source of income for huge cash transactions.
“Moreover, we had asked for data from the central excise and have gone through VAT returns filed in previous years. The past profile and documents on record shows the transaction was not genuine. Some individuals and companies that were used as a cover up had no business identity at all,” sources said.
It is learnt that the Income Tax investigation units in Delhi and Jaipur are looking into few cases where revised returns were fudged to dodge the tax authorities. According to a senior tax official, three businessmen from the national capital and two from Jaipur were questioned last week and the process to impose penalties against them was initiated.
“They had reported high sales in the revised return. After analysing past records, the gap and mala fide intention is quite clear,” the official said.