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New Delhi : In a swift and coordinated action on August 2, 2019, the Investigation Wing of Income -Tax (I-T) 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 State 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 August 3, more than Rs 2 crore of unaccounted cash along with incriminating documents were seized by officials of the Department. The cash found was hidden in unexpected places like water tanks.
This search by the I-T 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 from income tax 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) incharge of trade, announced to the media on August 8, 2019 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, according to a PIB release. The KHADC is a statutory autonomous body which regulates various aspects of trade and commerce in Meghalaya.
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