I don’t have any foreign account, says Hasan Ali
Pune businessman Hasan Ali Khan, in trouble following allegations that he had stashed crores of rupees in a Swiss bank account, has denied that he has concealed income. Manish Pachouly reports.mumbai Updated: Mar 18, 2011 01:01 IST
Pune businessman Hasan Ali Khan, in trouble following allegations that he had stashed crores of rupees in a Swiss bank account, has denied that he has concealed income.
“Neither do I have any foreign account, nor have I concealed any income abroad,” Khan has said on Wednesday in a 50-page reply to the show-cause notice sent by the income tax (I-T) department while refusing to pay the penalty of Rs 40,000 crore.
The I-T department had last month issued a show-cause notice to Khan under section 271(1)(c) [penalty for not paying tax] of the Income Tax Act, asking him why a penalty should not be levied on him for evading tax.
The department had raised a total tax demand of Rs 70,000 crore on Khan. This included a penalty of Rs 40,000 crore.
Khan is accused of acquiring and holding US dollar 8 billion (equivalent to Rs 36,000 crore) in a Swiss bank.
Khan said in his reply, since he has not concealed any income he does not fall within the ambit of provisions of section 271(1)(c).
Khan has also urged the I-T department to drop the penalty proceedings against him, replying to the tax demand for every assessment year from 2001-2002 to 2007-2008.
He has sought a month’s extension from the I-T department to reply to another show-cause notice asking why he should not be prosecuted for tax evasion. The I-T department had issued him a notice in the first week of March under section 276C of the Income Tax Act, which deals with willful attempt to evade tax.
The section lists provisions for rigorous imprisonment of up to seven years. Khan was told to reply to this notice by March 16. Sources in the I-T department said that Khan sought an extension saying because of the recent proceedings against him by the Enforcement Directorate, he did not get time to prepare a reply.
Khan has another case in the Income Tax Appellate Tribunal where he has filed an appeal against the department’s tax demand. The next date of hearing is March 23 when his lawyer and chartered accountant will appear before the tribunal.