IT dept detects benami business of running of petrol outlets in Meghalaya
Guwahati, Aug 10 (IBNS): The Investigation Wing of Income Tax department of North Eastern Region (NER) has detected benami business of running of petrol outlets in Meghalaya.
The Income Tax department has also seized over Rs 2 crore of unaccounted cash and incriminating documents from different petrol outlets in the state during search operations.
According to the reports, in a swift and coordinated action on August 2, the Investigation Wing of Income Tax Department, NER carried out searches on certain businessmen in Meghalaya found to be involved in running a web of petrol pumps managed and controlled as benami properties.
These persons were depriving the Meghalaya government of legitimate revenue by suppressing sales and non-deposit of local taxes collected, while also indulging in massive evasion of income tax by misusing exemption under Section 10(26) of the Income Tax Act, 1961 meant for tribal persons.
In the enforcement operation that commenced in the early hours and went on till wee hours of the next day, more than Rs 2 crore of unaccounted cash along with incriminating documents have been seized by officials of the Income Tax department.
The cash found was hidden in unexpected places like water tanks.
A top official of the IT department said that, this search by the IT department was a much-needed action on a long-existing racket run by some unscrupulous elements exploiting local citizens of Meghalaya and avoiding paying income tax using tribal persons, who are exempted, as a front.
The pre-search investigation involved extensive surveillance and covert enquiries which were continuing for over a year.
Following the searches exposing these benami petrol pumps, the Executive Committee (EC) member of Khasi Hills Autonomous District Council (KHADC) in-charge of trade, announced to the media on August 8 that urgent steps will be taken to prevent benami transactions in the state.
He noted that despite the law, benami transactions are thriving due to collusion between some local people and their non-tribal business partners.
The KHADC is a statutory autonomous body which regulates various aspects of trade and commerce in Meghalaya.
The action taken by the Department has been widely appreciated by the public and also local authorities as a timely and positive step that will help to control the menace of benami commercial activities, as well as augment government revenues.
(By Hemanta Kumar Nath, Guwahati)
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
