Relevant Portions of the Second Report of the Special Investigation Team (SIT) on Black Money Released; On the Directions of SIT, CBDT Directs Various Assessing Officers to Finalize the Assessments for all Actionable Cases (427), whose names are appearing in the HSBC List Received by the Department 

Placed below are the relevant portions of the Second Report of the Special Investigation Team (SIT) on Black Money which was recently submitted by the SIT to the Hon’ble Supreme Court:

I. In response to the directions issued by the SIT, CBDT has directed various Assessing Officers to finalize the assessments for all actionable cases (427), whose names are appearing in the HSBC list received by the Department.

As per the information received from France, there are in all 628 persons/entities (except in 2 cases where the same names have appeared twice). Out of these 628 persons/entities, amounts/balances are shown against 339 persons and no amounts/ balances are shown against 289 persons/entities. In respect of the latter category also, further investigations and assessments are being taken to logical end.

Out of the said 628 persons, 201 are either non–residents or non–traceable, leaving 427 persons’ cases as actionable cases.

The amount involved in these cases as per details available in the information received, is about Rs.4479 crores approximately ($ converted @ Rs.45). Out of these, Department has finalized assessment of 79 assessees (involving more than 300 assessments). An amount of Rs.2,926 crores has been brought to tax towards the undisclosed balances in the accounts relating to these persons. For the said amount, these assessees have been levied tax and interest at the appropriate rates. Penalty proceedings under Section 271 (1)(c) of the Income Tax Act, 1961 (I.T. Act) have been initiated in 46 cases. Such penalties have been levied in 3 cases so far. With regard to the other assessees, proceedings are pending.

Further, prosecutions have been initiated in 6 cases u/s. 276C (1) of the Income Tax (I.T.) Act for willful attempt to evade taxes and in 5 cases, proceedings have been initiated u/s. 276D of the I.T. Act on account of willful failure to furnish information in response to the notices issued by the Income Tax Department.

Show Cause Notices for filing prosecution have been issued in 10 more cases  and further action would be taken at the earlies t.

In other cases, necessary action is being expedited and substantial progress is expected in coming months. 

II. Apart from HSBC list, further actions taken by various agencies on the basis of directions given by SIT:-

1. Directorate of Revenue Intelligence:––

a)  Details have been furnished in respect of 31 cases of iron ore export cases.

In 11 cases, the concerned parties have admitted the undervaluation and before issuance of show cause notices, paid Rs.116.73 crores . Further action would be taken, in accordance with law.

In 10 cases, show cause notices have been issued. Preparation of show cause notice is in progress after completion of investigation in other cases.

b) In respect of other categories of trades, investigation is pending in 33 cases. In some cases, references have been made to Financial Intelligence Unit – India (FIU–IND), ED and CBDT. According to the agency, the total amount involved could be Rs. 14957.95 crores.

2. Directorate of Enforcement:––

a) From the details furnished by Directorate of Enforcement in relation to mining cases, on the basis of previous illegal mining of iron ore reports relating to Orissa, Goa and Karnataka, action has been taken. In one case of Orissa, accused persons were taken into custody by the Enforcement Directorate andproperties worth more than Rs. 400 crores have already been identified and are under process of attachment. Regarding other cases, the efforts are on to get the data from the Director of Intelligence Bureau and State Government.

b) In respect of Karnataka, 3 attachment orders have been passed attaching deposits in bank worth Rs.54.84 crores, properties (Rs.37 crores) and shares (Rs.904.13 crores)  and the orders have been confirmed by the adjudicating authority.

c) Further efforts have been made to ascertain whether any other proceeds of crime exist so that they can be provisionally attached. In respect of Goa and Jharkhand, the preliminary scrutiny and investigation is in progress.

d) It has been pointed out that because of stay order passed by the Hon’ble Kolkata High Court, the Directorate is facing difficulty in taking coercive action in Ponzi/chit fund scheme cases.

e) In respect of certain other cases, prosecution complaints have been filed. In case of one group case in Jharkhand, provisional attachment orders attaching properties worth Rs. 452.43 crores were passed and adjudicating authority has confirmed attachment of properties worth Rs. 263.73 crores.

f) 5 Letters Rogatories (LRs) have been issued by the PMLA Court. Replies to 4 LRs are pending while 1 LR has been returned and effort is being made to issue fresh LR.

g) In another mining case in Karnataka, provisional attachment for Rs.884.13 crores have been issued and confirmed by the adjudicating authority. Appeals are pending.

h) In respect of another group cases of Andhra Pradesh, provisional attachment orders for Rs.1093.10 crores have been confirmed by the adjudicating authority. It is directed that necessary steps be taken immediately for realization of the amounts involved.

In respect of most of the above noted cases, the CBDT has reported about the actions taken by the assessing officers.

SUGGESTIONS AND RECOMMENDATIONS of SIT FOR TAKING ACTION TO CONTROL BLACK MONEY Click Here to Read More >>

Source: Press Information Bureau