IT dept detects Rs. 7 crore evasion in Gadkari’s companies

[shobha nagrani]

 The Income Tax department has detected alleged tax evasion to the tune of Rs. 7 crore in the business transactions of Purti group of companies related to former BJP president Nitin Gadkari.

Probing the alleged dubious transactions of the Purti Power and Sugar Limited (PPSL) since last year, the department has completed assessments pertaining to the last two financial years and has found evasion to the tune of more than Rs 7 crore, top official sources said.

The Purti group, in its reaction, said it has not received any notice in this regard. A notice is not any indicator of any wrongdoing, it said, adding that Mr. Gadkari was not associated with the Purti group for the last two years.

"Our attention has been drawn to reports in a section of media that the Income Tax department is serving a tax assessment notice to the Purti Group for the last two assessment years. We would like to make it clear that neither the Purti group nor any functionary of the Purti group has received any notice so far," Nitin Kulkarni, PRO of Purti Group said in a statement.

"If any tax assessment notice is received, our MD Sudhir Dive in consultation with our tax advisors will give an appropriate response. However, a tax assessment notice is a routine procedure. There are different levels of appeal at various stages. The Purti group will deal with the matter.

"The tax assessment notice is certainly not any indication of wrong doing. We would like to place on record the fact that Nitin Gadkari has not associated with the Purti group from last two years," Mr. Kulkarni added.

The I-T department has begun the final scrutiny of documents of all the Purti group companies and the other assessments would be completed by the year end, the official sources said.

While preparing the final assessment orders, the department has taken into cognisance the statement of Mr. Gadkari and other senior officials of Purti group.

http://www.thehindu.com/news/national/it-dept-detects-rs-7-crore-evasion-in-gadkaris-companies/article4685956.ece

[pawansingla]

This is known as trail by media. The assessee has right of appeal. If we go by the detection figure by released CBDT(including searches, surveys, assessments) and what actually remians after the first appeal/second appeal , wewill come to know that hardly 2-3% is actuall conformed. Rest of the additions are deleted. But no one reports the news when these additions are deleted which are based on surmises, presumptions and innvoations.Media has to be fair in reporting.

[vsaiyar]

I AGREE WITH PAWAN SINGLA.  THE DEPARTMENT IN ORDER TO GAIN PUBLICITY AFTER THE RAID MAKES STATEMENTS OF THE APPROXIMATE CONCEALMENT DETECTED BY THEM WHICH IS REPORTED IN THE PRESS.  WHAT REMAINS OF THIS AFTER THE ASSESSMENT IS WORTH MENTIONING IN THE SAME PRESS BUT THIS IS NOT REPORTED EITHER BY THE INCOME TAX DEPARTMENT OR THE PRESS.  IN MANY CASES NONE OF THE FIGURES GIVEN BY THE DEPARTMENT IS RETAINED BY THE APPELLATE AUTHORITIES.  THE DEPARTMENT SHOULD BE BANNED IN PUBLICISING THE RAIDS AND ITS TENTATIVE RESULTS.