*First major outcome of non-compliance to IDS in J&K
Mohinder Verma
JAMMU, Dec 2: In a major outcome of the non-compliance to Income Declaration Scheme (IDS) in the State, the Income Tax Department has detected concealment of whopping Rs 65.39 crore by a prominent business group of Jammu, whose owner(s) and partners are all set to face tough action under the provisions of this scheme as well as Income Tax Act.
Official sources told EXCELSIOR that ever since the start of Income Declaration Scheme from June 1, 2016 the KC Group headed by Raju Choudhary was under the scanner of the Income Tax Department, J&K Circle as the data gathered by the department sleuths from various quarters was clearly reflecting grossly under-reported income by the group having variety of businesses in various parts of Jammu.
Instead of ensuring compliance to the directives of the IT Department, the KC Group was not forthcoming with the undisclosed income under the impression that the group was having links in the corridors of the power and would go scot free.
On the basis of available information, the Income Tax Department, J&K Circle on the directions of Principal Commissioner, Sangeeta Gupta on July 27, 2016 simultaneously conducted survey in 13 premises of K C Group headed by Raju Choudhary under Section 133-A of the Income Tax Act, sources said, adding during the survey the Income Tax sleuths laid hands on several incriminating documents indicating concealment of huge income from different businesses by the KC Group.
It is pertinent to mention here that business activities of the group include manufacturing of Ferro Chrome, Calcium Carbide, M S Ingots, school, cinema hall, sports club, dealership of Hyundai and Chevrolet and mall. Moreover, the group is constructing a huge hotel where concealed income is being invested.
Following completion of period of Income Declaration Scheme on September 30, 2016, the Income Tax Department examined IT returns, books of accounts and other documents impounded at the time of survey and after making post survey enquiries and confronting the assessee on various issues involved in the case, the department has detected concealment of Rs 65.39 crore by the group, sources informed.
Disclosing that IT Department has found 20 glaring instances of evasion of tax, they said, “as the IT sleuths are having substantial information and data in hand Raju Choudhary is all set to face action under Income Tax Act and Income Declaration Scheme as he has blatantly violated the provisions of both”, adding “he (the assessee) has been concealing income since 2012-13 and the income generated from different activities was never reflected in the Income Tax returns filed since 2012-13 financial year”.
Quoting some instances, sources said that Raju Choudhary has concealed profit to the tune of Rs 13 crore earned on sale of 14 shops at KC Shopping Mall. Similarly, difference of Rs 16 crore has been found by the IT sleuths in valuation of investment made in business establishments on Gulab Singh Marg and difference of over Rs 3 crore in valuation in investment made in KC Sports Complex.
Stating that Raju Choudhary has been found indulging in bogus transactions, loans/ advances and purchases, sources said that one of the hawala operators has admitted before the Income Tax Department about the bogus entry in the transactions of Raju Choudhary. “Moreover, K C Multiplex and Infrastructure Pvt Ltd has not filed the return of income”, they added.
“The assessee was given all the opportunities by the IT Department but he didn’t come forward to explain certain issues clearly and filed evasive replies”, sources pointed out, adding “in addition to what has been worked out till date the concerned IT sleuths will also examine certain more issues relating to this case at the time of further assessment”.
With this action, the Income Tax Department has given a loud and clear message that whosoever tries to evade the tax by concealing income will have to face the action as department enjoys sufficient power to take appropriate action especially when a crusade has been launched countrywide against black money.
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