IT, ACB raid Hilal Rather, top businessmen of Jammu
JAMMU, June 27: Income Tax Department today carried out raids at 21 locations in Jammu, Srinagar, Ludhiana and National Capital Region (NCR) in connection with evasion of huge tax and subsequent investment in real estate by Hilal Rather, son of former Finance Minister of the State Abdul Rahim Rather and other top businessmen associated in financial transactions with him.
On the basis of the documents impounded by the IT sleuths, the Central Board of Direct Taxes (CBDT) said that Hilal Rather is likely to face action under black money law as he has concealed information about his foreign bank account.
Official sources told EXCELSIOR that Investigation Wing of Income Tax Department conducted raids at 15 locations in Jammu, 4 in Kashmir and one each in Ludhiana and National Capital Region in connection with evasion of tax worth several hundred crores of rupees by Hilal Rather and those businessmen who were having financial transactions with his firms.
In Jammu, the IT sleuths, mostly from adjoining States, raided the business as well as residential premises of Hilal Rather, close relatives of former Member of Parliament and Congress leader late Janak Raj Gupta and Rakesh Jewellers as they were deeply involved in financial transactions with each other especially with regard to investments in real estate business.
During the raids, which were remotely connected with the action of the Anti-Corruption Bureau, the IT men seized large number of incriminating documents, which revealed that those associated with Hilal Rather were deeply involved in facilitating evasion of tax by Rather, who is engaged in the business of real estate and information technology.
“The IT sleuths will start detailed scrutiny of the documents relating to vehicle showroom and bottling plant owned by close relatives of Janak Raj Gupta”, sources said, adding “even financial transactions carried out by Rakesh Jewellers will come under minute examination following completion of raids, which are likely to continue tomorrow also as all those IT officers, who have come from different States, are still camping in Jammu”.
The entire exercise was carried out so discretely that even officers of the Income Tax Department in Jammu and Kashmir were unaware of the plans till large number of sleuths from different States reached Jammu this morning.
Meanwhile, sources in the Central Board of Direct Taxes said, “there were allegations of large scale diversion and misappropriation of loan taken from J&K Bank by the group of Hilal Rather”, adding “during the search operation evidence was found that the main promoter was a Director in a Dubai based company and is also holding and operating a foreign bank account”.
“Neither his interest in the Dubai company nor the foreign bank account has ever been disclosed by him in his tax returns. He is likely to face action under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act as well as other relevant laws for deliberate omission to declare foreign investment as mandated by law”, sources said.
“Field enquires have also revealed that the tax evader has sold/booked part of his real estate project of Paradise Avenue against unaccounted cash. The cash component has neither been disclosed in tax returns by purchasers of the flats of Paradise Avenue nor has he disclosed these receipts in his books of accounts”, sources further said, adding “other than the Paradise Avenue project, the tax evader has also undertaken real estate transactions in his personal capacity or in the name of family members wherein allegedly more than Rs 7 crore of unaccounted cash has changed hands”.
During the demonetisation period, the group had made cash deposits of Rs 1.44 crore and the main promoter could not explain the source of these cash deposits during the course of search action.
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