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Home / India News / Stumped at getting IT notice, Odisha labourer at a loss to explain deposit of Rs 1.47 crore

Stumped at getting IT notice, Odisha labourer at a loss to explain deposit of Rs 1.47 crore

Sanadhar Gond, a tribal daily labourer in Pujaribharandi village received the IT notice directing him to pay Rs 2.59 lakh presumptive tax under Section 44 of the Income Tax Act. The income tax officials said the penalty was for an unexplained transaction in his ICICI bank account amounting to Rs 1.47 crore.

india Updated: Feb 03, 2020 20:11 IST
Debabrata Mohanty
Debabrata Mohanty
Hindustan Times, Bhubaneswar
The IT notice said Gond has been engaged in wholesale trading of seasonal goods. Gond said he had received 5 such notices earlier, but never cared for them. (Image used for representation).
The IT notice said Gond has been engaged in wholesale trading of seasonal goods. Gond said he had received 5 such notices earlier, but never cared for them. (Image used for representation).(REUTERS PHOTO.)

A tribal daily wage labourer in Nabarangpur district has received a notice from the Income Tax department asking him to pay a penalty of Rs 2.59 lakh for depositing Rs 1.47 crore in his bank account.

Sanadhar Gond, a tribal daily labourer in Pujaribharandi village received the IT notice directing him to pay Rs 2.59 lakh presumptive tax under Section 44 of the Income Tax Act. The income tax officials said the penalty was for an unexplained transaction in his ICICI bank account amounting to Rs 1.47 crore.

“I have never gone to a bank in my life nor do I have a bank account. When I was working as a daily labourer with a local businessman for 7 years, he had taken my Aadhar card and other documents. I have no idea why he took my documents. When I received the notice, I went to the businessman I worked for. However, he refused to meet me,” said Gond, who earns around Rs 300 a day by working in the farms of local people.

The IT notice said Gond has been engaged in wholesale trading of seasonal goods. “During the year under consideration, the assessee has not filed his return of income though he had taxable income and also made cash deposits amounting to Rs 1.47 crore into his bank accounts through two cheques in ICICI Bank’s Umerkote branch during 2013-14 financial year,” the notice said.

Gond said he had received 5 such notices earlier, but never cared for them. “But when I received another notice recently, I took all the notices to a school teacher in our village who explained that it was from the income tax department. I was shocked to get a notice from the department as throughout my life I have never earned enough to pay tax,” he said.

Income tax officials, however, said the notice to Gond was as per duly laid-down procedures of the department.

“The case is of 2013-14 financial year and we reopened it with due permission of the joint commissioner of income tax. The penalty is for unexplained deposit of money in a bank account. As per the evidence we have, the bank account has KYC and Gond signed all the withdrawal and deposit forms in English,” Ashok Das, income tax officer of IT’s Jeypore circle said.

“We charged 8 per cent of the total turnover as penalty. The department can also levy Rs 3-4 lakh more penalty on the total turnover. Gond never came to me to explain who opened the bank account for him. If he wants, he can go and appeal before the chief income tax commissioner in Bhubaneswar,” Das said.

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