*Step creates storm in police, bureaucratic, real estate circles
Mohinder Verma
JAMMU, Nov 23: Following receipt of reports about adjustment of huge demonetized currency in the purchase of gold bars and ornaments, nearly 300 jewellers have come under the lens of Income Tax Department J&K Circle and they have been issued notices for prompt submission of record of their sales and stock as well as footage of Close Circuit Television (CCTV) cameras installed at their respective business premises. This step of the taxmen has created storm in the police, bureaucratic and real estate circles as those who had made purchases by using black money would also get identified and land in the dragnet of the department.
Moreover, the Income Tax Department has initiated steps towards the scrutiny of the anomalous sales recorded by those 26 top jewellers whose premises were surveyed on November 11 and they will face action under Income Tax Act.
Official sources told EXCELSIOR that Income Tax Department J&K Circle has received inputs from different quarters that not only those 26 top jewellers whose premises were surveyed on November 11 for adjustment of demonetized money by selling unaccounted stock at exorbitant rates, even huge number of other bullion dealers had made all out efforts to defeat the intent of the Government to curb the black money.
Taking serious note of this, Principal Commissioner of Income Tax J&K Circle, Sangeeta Gupta decided to invoke Section 133(6) of Income Tax Act to get the record of sales and stock from the jewellers with effect from November 8 to November 12 so as to tighten noose around those who adjusted the black money by selling gold bars and ornaments.
It is pertinent to mention here that Section 133(6) of Income Tax Act confers powers on the taxmen to call information from any assessee for investigation purpose. The Income Tax Act gives the department wide powers of investigation including the power to seek information about an assessee. The information which can be asked under Section 133(6) of the Act should be such as per the opinion of the officer(s) will be essential for any proceeding under the Act.
“The IT Department has issued notices to a total of 287 jewellers of almost all the districts of Jammu province under Section 133(6) so far asking them to give information of sales and stock from November 8 to November 12”, sources said while disclosing that 69 jewellers have already responded to the notices by furnishing the requisite details to the concerned Income Tax Officers (ITOs).
In order to ensure that none of the jeweller who had tried to create hurdle in the decision of Government of India to unearth black-money and those made purchases of gold bars and ornaments do not go scot free, the Income Tax Department has also sought footage of CCTVs installed in the premises of these 287 jewellers, sources informed.
“By analyzing the CCTV footage the Income Tax Department would be able to zero-in on those persons who had visited the jewellers with the demonetized money for purchase of gold from November 8 mid-night onwards when the currency notes of Rs 500 and Rs 1000 lost their legality”, sources said, adding that Principal Commissioner of Income Tax, J&K Circle, Sangeeta Gupta has also issued directions to the taxmen for expeditious scrutiny of documents and CCTV footage of these 287 jewellers so that appropriate action is initiated against them without loss of time.
Meanwhile, the Income Tax Department has started processing the cases of those 26 top jewellers whose premises were surveyed on November 11, for scrutiny as majority of them had recorded abnormal sales following demonetization decision. “Some of the jewellers had recorded sales of Rs 5.5 crore from April 1 to November 7, 2016 but for November 8 they have shown sales of Rs 2.5 crore, which cannot be justified in any way”, sources said.
“Even the CCTV footage obtained from the premises of these 26 jewellers are being monitored by the taxmen to identify those who had visited the bullion dealers with demonetized money for adjustment”, sources further said, adding “this step of the taxmen has created storm in the police, bureaucratic and real estate circles as those who had made purchases by using black money would also land in the dragnet of the department”.
Moreover, large number of black-money holders would get identified by the Income Tax Department after receipt of CCTV footage from all the 287 jewellers, who have been issued notices under Section 133(6) of Income Tax Act, sources informed.
When contacted, Principal Commissioner of Income Tax, Sangeeta Gupta confirmed that department has issued notices to jewellers in almost all the districts of Jammu province, adding “more such notices are in the offing and we will ensure that whosever tried to defeat the intent of the Government of India is punished as per the provisions of Income Tax Act”.
Responding to a question, she said that Central Processing Unit of the Income Tax Department at Bangalore is getting fed with all the transactions being made in the banks from November 8 mid-night onwards and these will be put to close monitoring only after December 30, 2016 as there is no bar on depositing of money several times in a particular account. “Even there are standing instructions to the banks to share the transactions being made without quoting PAN to the notice of Income Tax Department for necessary action”, she added.
“Neither anybody can donate demonetized money to religious organizations/trusts nor the latter can receive the same as both these activities are illegal”, the Principal Commissioner said in response to another question.
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