Petrol pumps under I-T scanner for depositing more cash than sale
A senior official said the licences of the pump owners and cooking gas distributors could be cancelled if probes show discrepancies and illegal transactions of demonetised currency.india Updated: Mar 09, 2017 07:35 IST
Petrol and CNG pump owners and distributors of cooking gas are under the scanner of taxmen after investigations revealed serious malpractices by many of them following demonetisation.
After November 8, 2016, more than 5,000 petrol pumps across the country deposited 20% additional cash in demonetised currency notes of Rs500 and Rs1,000, over and above their recorded sale during the period.
A senior official of the income tax department said the licences of the pump owners and cooking gas distributors could be cancelled if further probes show discrepancies and illegal transactions of demonetised currency.
“The income tax department has taken serious note of the illegal transactions to thwart its efforts to clean up the economy,” a report by the department said.
The official said investigations were underway and the future course of action will be decided based on further examinations.
“We are yet to come up with the final numbers of petrol and CNG pumps that show a sale and cash mismatch… We are still investigating and will take serious action,” the official added.
The government, which withdrew high denomination currency notes, allowed their use for utility payments such as petrol, diesel and gas, besides buying airline tickets.
But there was a spike in instances of people with black money using the facility to get rid of their defunct notes. People tried to exchange them with jewellers and at petrol and CNG pumps.
Many even used them to make advance payments of various services. To stop the malpractice, the government thereafter banned the use of Rs1,000 from the end of November and stopped the exchange of Rs500 notes in the first week of December.
First Published: Mar 08, 2017 23:31 IST