Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 31st March, 2021

PRESS RELEASE

Extension of Time for Intimation of Aadhaar and Certain Other Time Limits

In view of the COVID-19 pandemic, certain time limits specified under the various tax and Benami laws have been extended by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and subsequent notifications issued under this Act.

The extended last date for intimating Aadhaar number under the Income-tax Act, 1961 (the Act) for the purposes of linking Aadhaar with PAN is 31st March, 2021. Representations have been received from taxpayers that the last date for intimating the Aadhaar number may further be extended in the wake of the on-going COVID-19 pandemic. Keeping in view the difficulties faced by the taxpayers, the Central Government has issued notification today extending the last date for the intimation of Aadhaar number and linking thereof with PAN to 30th June, 2021.

The said notification also extended time-limits for issue of notice under section 148 of the Act, passing of consequential order for direction issued by the Dispute Resolution Panel (DRP) and processing of equalisation levy statements to 30th April, 2021.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 20th March, 2021

PRESS RELEASE

Income Tax Department conducts searches in Mumbai

The Income Tax Department carried out searches on 17.03.2021 in the case of a prominent builder and developer group based in Mumbai. Searches were also conducted in the case of dealers engaged in the business of trading of mobiles accessories. In all, 29 premises located in Mumbai were covered under search operation, while 14 premises were covered under survey action.

The real estate group is developing a commercial Mall, having 950 units exclusively for the mobile accessories business. Of these, about 905 of the units have been sold starting from 2017 till date. The evidences stored in a pen drive found in the searched premises revealed that the builder group, has taken an amount of Rs. 150 crore as on-money receipts over and above the agreement value, which is not accounted for in the books of accounts on sale of such units. Further, similar evidence of on-money amounting to Rs. 70 crore has been found in the pen drive pertaining to a residential-cum-commercial project. Cash amounting to Rs. 5.50 crore has been found and seized from various premises of this group. The receipts of on-money for sale of shops/flats by the builder in various projects recorded in digital form have been seized.

In respect of the dealers engaged in the business of mobile accessories, various incriminating evidence has been found pertaining to out-of-books sales. The group imports goods from China and sells these goods to various parties all over India. The imports are under invoiced and payments are made through hawala channels. 13 secret godowns containing unaccounted stock have been discovered, wherein the stock is being inventorised and valuation is under progress.

Further, evidence of unaccounted investments in properties by the said dealers amounting to Rs. 40.5 crore has been detected. Out of this, unaccounted investments worth Rs. 21 crore are against the purchase of units in the said commercial Mall. Four undisclosed bank accounts in the names of employees have also been detected, which are used to collect the sale proceeds from the retail vendors of the groups. The total deposits in the bank accounts amount to Rs. 80 crore.

This operation has revealed that the entire sector of trading in mobile accessories is largely unaccounted. The main components are imported from China through Mumbai and Chennai ports. Search has revealed that the dealers are undervaluing the sales and purchases in a major way. The transactions with Chinese counterparts take place through the We-Chat app. The Department has recovered the We-chat messages using forensics. The information pieces are being verified and collated to extract information regarding the quantum and cost of Chinese imports.

Unaccounted cash of Rs. 5.89 crore has been seized, so far, in this operation. The searches, as yet, have resulted in the detection of undisclosed income of around Rs. 270 crore. Further investigations and the exercise of valuation of unaccounted stock are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 22nd March, 2021

PRESS RELEASE

Income Tax Department conducts searches in Jharkhand

The Income Tax Department carried out searches on a closely-held Group of Jharkhand on 17.03.2021 and concluded the same on 20.03.2021. The Group is engaged in manufacturing and trading of Sponge Iron, MS Ingots, MS Rods, and TMT bars and has dealerships of petrol pumps. Search and survey was carried out at more than 20 premises.

The Group was indulging in manufacture and sale outside the books and was using an extensive network of shell companies to plough back unaccounted income. Preliminary findings include the sale of unaccounted production of Rs. 185 crore. Digital media containing details of such unaccounted transactions has been recovered and analysed. Accounts of actual production details which are not recorded in regular books have been recovered.

The products of this Group are used in building construction and other infrastructure projects, and unaccounted production is sold in cash in eastern India. The cash generated is being ploughed back into the Group in the form of share capital and unsecured loans from Kolkata based shell companies. The money is also invested in the purchase of properties and expensive personal items.

Seized documents indicate that the unaccounted income of the Group amounting to about Rs. 100 crore was ploughed back in the form of share capital at very high premiums through Kolkata based shell companies. The original share certificates issued to these shell companies were also found in the company's office premises.  Investigations reveal that the so called shareholders do not exist.

The Group has also obtained unsecured loans of about Rs.25 crore from Kolkata-based shell companies, clearly indicating the ploughing back of its own unaccounted income.The Group has obtained bogus commodity profit entries amounting to Rs. 30 crore.

An entry provider and a freight forwarder were also searched. These persons were arranging entries through shell companies. Documents indicating such unaccounted entries have been found during search, further establishing the nature of unaccounted transactions and entries taken by the Group.

The search has revealed that the Group was actively engaged in the generation of unaccounted income in cash and introducing the same in the Group asequity and loans and making investments in real estate. Unaccounted cash of Rs. 3.07 crore was seized while unaccounted bullion and jewellery of Rs 1.28 crorewas seized during the search.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 18th March, 2021

PRESS RELEASE

Income Tax Department conducts searches in Haryana

The Income Tax Department carried out search on 17.03.2021 on a group engaged in the business of real estate, housing, hospitality and retail liquor trade. The search operation was carried out at 12 different premises located in Samalkha, Gurugram, Rohtak and Panchkula.

The search action emanated due to non-compliance to faceless scrutiny assessment notices selected and issued through a computerised system.Notices under the Faceless Assessment Scheme sent to certain assessees were consistently not complied with even though received by them. Data analytics revealed that the recipients were persons of no/low means. Subsequent internal and discreet enquiries revealed that the said persons were the front for the above said group and were also the benamidars of some of the group members.

Further enquiries revealed that the persons to whom the notices were issued were engaged in the liquor business run by the group. It was found that such persons to whom liquor licences were issued were the benamidars of the main group members. They were persons of no means and they have stated on oath that they have no knowledge of the business being run in their names. It seems that their names have been misused to avail the quota reserved for SC/ST section. Further investigation is on to establish the money trail and real ownership. Suitable action under Benami Prohibition Act will be taken in all such cases.

During the search, evidence has been found proving bogus booking of flats in the name of employees/relatives and unidentifiable persons, in the affordable housing scheme project of the group. The company has allotted houses to the employees of the group members, whose un-encashedcheques have been found at the premises. However, flats have been further sold to the actual buyer at a premium of Rs. 6 lakh to 10 lakh each. The premiums have been received in cash and not accounted for in the books.Premium in cash has been charged from the other buyers as well, in this affordable housing scheme. Thus, there is not only misuse of the scheme but also tax evasionwhich is estimated to be not less than Rs. 36 crore.

During the search, evidence was found that the group has claimed bogus expenses on account of building material like cement, raiti, iron bar etc. of around Rs. 100 crore, in previous years, leading to huge evasion of taxes. Further, it was seen that the group is also regularly claiming huge bogus business promotion expenses, in the previous years, and laundering the cash siphoned off as unaccounted investment in immovable properties.

Substantial evidence hasalso been found that the group has routed their unaccounted income of Rs. 70 crore in the form of bogus share capital and unsecured loan, through a shell company which has been invested in the buy-out of a real estate project from a popular builder in the area of Gurugram. Evidence in the form of property documents and title deeds have been found regarding investment in benami properties in India as well as out of the country. The matter is being examined further.

The group has incurred unaccounted expenditure for personal and office purposes in cash running into crores of rupees. This also includes expenditure for taking various approvals for projects and lavish marriage expenses.

During the search, unexplained investment in jewellery of approximate Rs. 3 crore has been found. 4 bank lockers of the group have also been found and put under restraint.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Department of Revenue

Ministry of Finance

Central Board of Direct Taxes

New Delhi, 17th March, 2021

PRESS RELEASE

Clarification on continuation of concessional rate of tax on certain interest income of the FPIs

Section 115AD of the Income-tax Act, 1961 (the ‘Act’) inter alia contains provisions for taxation of income of FPIs. Proviso to section 115AD(1)(i) provides that the tax shall be chargeable at the concessional rate of 5% on interest income referred to in section 194LD.

There are reports in certain section of media that the said concessional tax rate of 5% has been withdrawn. It is hereby clarified that there is no change in the said proviso even after amendment of section 115AD vide Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the concessional rate of tax of 5% shall continue to be applicable for interest income referred to in section 194LD of the Act.  

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT