Barely weeks after news broke of the PNB-Nirav Modi scam, the Income Tax Department has initiated legal action against 447 companies, for allegedly committing tax fraud to the tune of Rs 3,200 crore, the Times of India reported on 5 March.
The report states that the I-T cell has pulled up companies for deducting tax from their employees, but failing to deposit the same with the Government, instead, diverting the funds to their businesses.
The TOI report states that the income tax department has initiated prosecution against these companies, with a number of warrants being issued for offences under the Income Tax Act committed in the financial year 2017-2018.
The report adds that action has been initiated for offences under Section 276 B of the I-T Act.
The TOI report adds, citing sources, that the Income Tax department was contemplating adding criminal breach of trust, and cheating to the list of offences, since the alleged act amounts to duping employees, and diverting funds.
The report adds that a majority of offenders are builders and building contractors, with others including film production houses, start-ups, and a number of “companies” that were functional for less than six months.
The report alleges that one person named in the list is a powerful, politically connected individual, accused of diverting as much as Rs 100 crore in taxes deducted from employees, towards their personal business venture.
The report, again citing sources, goes on to allege that an infrastructure company that works in port development had diverted Rs 14 crore, and another firm, an IT-solutions MNC, had failed to deposit Rs 11 crore it had deducted from employees as tax.
The report adds that the Income Tax Department had initiated action for recovery, by attaching the movable and immovable assets of the companies, along with the bank accounts of the alleged offenders.
(With inputs from TOI)
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