2G probe opens floodgates of information on tax evasion
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Dec. 9: The Income-Tax department has almost completed the probe into the 2G spectrum scam related transactions but is awaiting for the results of the investigation of the CBI and Enforcement Directorate to take further action against some companies and individuals on the tax evasion.
However, the revelations in the interception of the corporate lobbyist, Ms Niira Radia’s phone came as a “shocker” to the tax authorities too as it has opened new vistas of probe for them, which go beyond 2G case and has far wider ramifications, sources said.
“I-T department has done its work, it is now watching and waiting for the probe by the CBI and ED, particularly into the money laundering aspect,” the sources said. They said the CBI has to go into the all issues and establish the involvement of the people and conspiracies hatched by them to violate the provisions of laws like Indian Penal Code and the Prevention of Corruption Act, while the ED would look into the “illegal transactions” under the FEMA and the Prevention of Money Laundering Act.
“Then only I-T department steps in to assess the actual violations with regard to the provisions of the Income Tax Act, including disproportionate income generated during a particular financial year,” the sources said.
As every company has to maintain books of account on all transactions apparently the funds generated by them during a particular financial year must have been shown in their records irrespective of the source from where they came.
“It is here that the CBI and ED investigation become crucial to establish actual source of funds; to show whether they were generated by legal means, or were ‘ill gotten’ money sought to be converted into legal money,” they said. If the SC widens the ambit of the probe to include allocation of spectrum licences from 2001 and also orders probe into loans given by by some PSU banks on “hypothecation” of 2G licences as was indicated to the CBI, then the horizon of the investigation would widen for I-T authorities also, the sources admitted.
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