Reference: Central Board of Indirect Taxes and Customs
Update:
AO has no power to presume that money found in possession of a person belongs to third person
Dharmraj Prasad Bibhuti v. ITAT – [2019] 109 taxmann.com 388 (Patna)
A search was conducted at the residential premises of the assessee’s Father-in-law. During the course of search proceedings, cash of Rs. 6.18 lakhs was found out of which Rs. 6 lakhs were seized and the balance was released. At the same time a search was also conducted at another premises where assessee was residing. No cash or jewellery, etc., was found there. Pursuant to the search, a notice directing the assessee to furnish his return of undisclosed income was issued under section 158BC. The assessee filed his return along with the explanations to substantiate his return.
The Assessing Officer (AO) completed the assessment by making additions to the income of the assessee in respect of the cash found at the residential premises of assessee’s Father-in-law. The AO made said additions on the ground that the assessee’s wife was the only child of assessee’s Father-in-law and the assessee used to live with assessee’s Father-in-law. Thus, assessee was the only one who was accumulating the cash which was found during the search proceedings.
The High Court held that section 292C provides that if any money is found during the course of search proceedings, it may be presumed that such money belongs to the person from whose possession it is found. In the instant case, it couldn’t be presumed to belong to the assessee.
Update:
Income Tax Department conducts Search on a “wellness group” in Chennai:
On 16.10.2019, the Income Tax Department conducted search action under the Income-tax Act, 1961 in the case of a conglomerate of trusts and companies that run year-round \”wellness courses\” and training programmes in philosophy, spirituality, etc at various sprawling residential campuses in Varadaiahpalem in AP, and also in Chennai and Bangalore.
There was intelligence that the group has been suppressing its receipts which are ploughed into investment in huge tracts of landed property in AP and TN and also in investments abroad. The search action which is still in progress has covered about 40 premises located in Chennai, Hyderabad, Bangalore and Varadaiahpalem. During the search proceedings, evidence has been found that the group has been regularly suppressing its receipts at its various centres or ashrams. Evidence has been found with key employees who maintained record of cash collections that were kept outside the accounts for use in making investments elsewhere and also for paying for properties over and above documented values.
It is learnt that the group also earned unaccounted income in receiving cash from property sales over and above documented values. A preliminary estimate of such unaccounted cash receipts is Rs. 409 crore from FY 2014-15 onwards. Such unaccounted cash receipts are also evidenced by huge quantities of cash and other valuables found at the residences of the founder and his son, and at one of the campuses. A total sum of cash of Rs. 43.9 crore has been found and seized by the Department at these premises.
Update:
Income Tax Department searches prominent business group in Hyderabad:
Income Tax Department conducted Search & Survey action on a prominent business group having interest in infrastructure, irrigation, hydrocarbons and power sectors. More than 30 premises were covered in Hyderabad, NCR and Mumbai.
Evidence of large-scale bogus expenses, over-invoicing of purchase and sub- contract expenses have been found and seized. The group also indulged in out of books transactions and manipulation of books to suppress its taxable profits.
Evidence of illegal payments through hawala channels running into hundreds of crores have also been found and seized.
Unaccounted assets of Rs 17.4 cr have been seized.
Further investigation is in progress.
Reference: Reserve Bank of India
Update:
Extension of RBI Direction- United Cooperative Bank Limited
Reserve Bank of India had issued Directions to United Co-operative Bank Limited, Bagnan, West Bengal from the close of business on July 18, 2018, as modified from time to time which was last extended upto October 18, 2019. Reserve Bank of India has further extended the directions for a period of six months from October 19, 2019 to April 18, 2020.
Implication:
The issue of the above Directions by Reserve Bank of India should not per se be construed as cancellation of banking licence. The bank will continue to undertake banking business with restrictions till its financial position improves.
Update:
Reference: Securities and Exchange board of India
Monitory penalty on M/S Vision Sponge Iron Pvt Ltd.:
SEBI imposed a fine of Rs. 24,10,000 on Vision Sponge Iron Pvt Ltd. for indulging in execution of reversal trades in Stock Options with same entity on the same day, thereby creating artificial volume, leading to false and misleading appearance of trading in the illiquid stock options at BSE, thus violating of the provisions of Regulations 3(a), (b), (c), (d) and 4(1), 4(2) (a)of PFUTP Regulations.
Implication:
The entity shall pay the amount mentioned in order within a period of 45 days from the date of service of this order.
