Warrant issued against Nirav Modi in Tax evasion case.

A magistrate’s court here today issued a bailable arrest warrant against diamond trader Nirav Modi in connection with a case of alleged tax evasion in purchase of a property which turned out to be “benami”, an Income Tax department official said.

Benami properties are those that are not bought and registered in the name of their real owner. Holding benami properties is an offence.

Modi is also a key accused in the Rs 12,717 crore Punjab National Bank fraud case.

“The court has issued a bailable warrant against Modi,” the official said.

He said the department was investigating the matter against Modi since 2017 but declined to disclose the details of the property.

The Income Tax department had recorded the statements of Modi, who is said to be in the US, and some of his employees.

The official said the probe revealed that Modi had given a false statement to department

“When we went to his residence in Worli recently with summons, we found it locked,” the officer said. A case was later filed in the court.

The court adjourned the case till next month.

Court grants bail to Anurag Dalmia in tax evasion case

anurag dalmiaDalmia Group of Companies’ Vice Chairman Anurag Dalmia has been granted bail by a Delhi court in a black money case of alleged tax evasion lodged by the Income Tax Department.

The court granted the relief to the 59-year-old Mr. Anurag after he appeared before it in pursuance to summons issued to him.

He was granted bail on furnishing a personal bond of Rs. 50,000 with one surety of the like amount.

The court also directed him to inform it whenever he leaves the country.

The court also granted bail to businessman Parag Dalmia, also summoned as accused in a separate black money case of alleged tax evasion, on furnishing of bail bond of Rs. 50,000 and surety of like amount. As per the department, he is the director of Dalmia Infrastructure Pvt Ltd and Globus Estates Pvt Ltd. He is not associated with the Dalmia Group of Companies.

The court has now fixed both the cases for May 18 for scrutiny of documents and recording of pre-charge evidence.

Regarding Mr. Anurag, the department has filed two similar complaints for years 2006 and 2007, alleging he was holding a foreign bank account but did not disclose it in his income tax returns and there were undisclosed deposits in the account.

It claimed that the account maintained at HSBC Bank, Switzerland, was opened in November 2000 by Mr. Anurag but on being confronted, he denied having any such foreign account.

The complaint said the total balance in the bank account as on March 31, 2006 was over USD 62 lakh (Rs. 27.9 crore) and USD 22 lakh (Rs. 14.17 crore) as on March 31, 2007 in addition to the interest.

Regarding Mr. Parag, the department claimed he was maintaining a bank account with HSBC Bank, Geneva, which was opened in October, 1998 and the balance in the account was about USD 2.7 lakh which amounts to Rs. 1.2 crore as on March 31, 2006 in addition to the interest.

When confronted, Mr. Parag refused to comment on the issue of having foreign bank account, the income tax department’s complaint alleged.

The complaints were filed by the department in January under sections 276 (c)(1) (wilful attempt to evade tax), 276(d) (failure to produce accounts and documents) and 277 (false statement in verification) of the IT Act.

Court penalises pvt firm in tax evasion case

A private firm has been penalised with a fine of Rs eight lakh in a tax evasion case by a Delhi court which noted that increasing cases of tax evasion by firms has been causing huge loss to the state exchequer and needed to be curbed with a firm hand.

Additional Chief Metropolitan Magistrate Devendra Kumar Sharma held the firm, Radiant Polymers Pvt Ltd, guilty of not depositing the deducted amount of TDS with the Income Tax Department within stipulated time.

The court imposed a fine of Rs 2 lakh on the firm for the financial year 2008-09 being first time offence.

Apart from this, the court also imposed a fine of Rs 3 lakh each for the financial years 2009-10 and 2010-11 on the firm being subsequent offence committed after commission of the first one.

“Evasion of tax by companies/persons in one form or the other by not depositing TDS or other taxes within prescribed time by a company, is rising day-by-day which causes huge loss to government exchequer and such practice should be curbed with a firm hand.

“In this case, admittedly the convict (firm) was under obligation to deposit the TDS amount within stipulated period from the date of deduction but same was not deposited and there was a delay,” the court said, adding that the delay was unexplained.

According to the Income Tax Department, the firm had deducted TDS amount of Rs 29.1 lakh, Rs 24.8 lakh and Rs 24.6 lakh for the financial years 2008-09, 2009-10 and 2010-11 respectively from salaries of its employees.

It said despite having knowledge of deducting TDS and to deposit in within stipulated time as per the Income Tax Act, the company showed “ignorance and deliberately diversified funds” for other purposes.

The firm submitted that entire TDS and penalty/interest has been deposited with the IT department.

The firm’s counsel said the delay in depositing the amount was due to financial crunch and it had to first clear the dues of salary of 300 employees.