‘Illegal’ conversion of `500, `1,000 notes: I-T dept starts countrywide raids against petrol pump owners, LPG distributors

According to officials, “surveys” -- not raids -- have been conducted throughout the country at petrol and LPG pumps since March 6

Written by Amitav Ranjan | New Delhi | Published:March 18, 2017 1:30 am
petrol pumps, petrol pumps raid, income tax raids petrol pumps, IT raids, petrol pumps demonetisation, india news, latest news, indian express Petrol and CNG pumps were allowed to accept Rs 500 notes till December 2 with payment for LPG cylinders continued to be exempted even after that date. (Representational Image)

The Income Tax department has started countrywide raids against petrol pump owners and LPG distributors for alleged conversion of banned Rs 500 and Rs 1000 notes by way of currency deposits in excess of actual sales during the demonetisation period. Armed with notices under Section 133A of the IT Act, the inspectors are combing through cash book of pump owners to ascertain if sales corresponded to the deposits made during the nearly month-long period when scrapped currencies were allowed for purchasing fuels until December 3. Any excesses, even though claimed by the pump owner or LPG distributor to be outstanding debts received during the period, is being booked as illegal on the spot with operators forced to issue cheque for the same amount to the Pradhan Mantri Garib Kalyan Yojana with tax and penalty of 49.90 per cent.

 

IT Officers confirmed that “surveys” — not raids — were being conducted throughout the country at the business premises of the pump owners and LPG distributors since March 6.

“The surveys so far have shown that on an average, pump owners deposited in excess of 15 percent of the sales collections,” said an IT Commissioner. He said that further scrutiny was on with data being sought from state-run oil marketing companies to assess if the sales matched with the fuels purchased from the OMCs.

An IT survey last month revealed that fuel sellers deposited 20 percent more cash than their sales during the grace period until December 2 leading to a conclusion that some of them may have indulged in conversion of unaccounted cash held in high-value demonetised currencies.

Petrol and CNG pumps were allowed to accept Rs 500 notes till December 2 with payment for LPG cylinders continued to be exempted even after that date. On November 8, Prime Minister Narendra Modi declared that the Rs 500 and Rs 1,000 notes would cease to be legal tender from midnight.

In February, the government launched Operation Clean Money whereby it sent emails and SMS to 18 lakh individuals who had deposited more than Rs 5 lakh, but the same didn’t correspond to their income profile or previous income tax returns.

 

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  1. D
    Daridi
    Mar 17, 2017 at 5:10 pm
    Excellent Modi, exactly after elections, what a chanakyan scoundrel advised idea!
    Reply
    1. G
      GoodMove
      Mar 17, 2017 at 8:29 am
      Awesome, this is where the black money in cash is accounted for. :-) Everyone who thought they are smarter than the government will know now the consequences of corruption. Not only will they lose the black money but will also lose another 50% on top of it.
      Reply
      1. M
        Mahesh Naik
        Mar 18, 2017 at 1:19 pm
        what can the state do to citizens who spend time in keeping busy with headlines instead of counting coins at home.!
        Reply
        1. S
          SriRam
          Mar 17, 2017 at 9:53 pm
          How do you know that the report will come in your life time?
          Reply
          1. S
            SriRam
            Mar 17, 2017 at 10:03 pm
            Picture abhi CHALOO hai mere dost .....SITARON SE AAGE JAHAN AUR BHI HAIN
            Reply
            1. S
              SriRam
              Mar 17, 2017 at 9:59 pm
              You deserve to be governor of some very big state
              Reply
              1. Z
                ZincTrue
                Mar 17, 2017 at 7:39 pm
                There are 3 laws, which law you are talking about dudelt;br/gt;1.For Politicianlt;br/gt;2.For Richlt;br/gt;3.For Poor
                Reply
                1. Z
                  ZincTrue
                  Mar 17, 2017 at 7:47 pm
                  Why no tax to the politicians.lt;br/gt;Tax them, they will not reveal the true amount anyway
                  Reply
                  1. A
                    ams
                    Mar 17, 2017 at 7:10 pm
                    Let us wait for the result of these so-called "raids" before proclaiming anyone as Chanakya, bhim or bakasur.
                    Reply
                    1. A
                      ams
                      Mar 17, 2017 at 7:09 pm
                      Well most petrol pump owners are well connected politically so these "raids" or "surveys" whatever you call them are pure hogwash.
                      Reply
                      1. A
                        ashok s
                        Mar 17, 2017 at 1:45 pm
                        Any more elections ?
                        Reply
                        1. T
                          Tushar
                          Mar 17, 2017 at 10:20 am
                          Hahahahaha ...IT personnel will li ck their fingers that's it ... Coz owners of petrol pumps are not fools.they have enough reasonable explanation for that ...He could claim it's his additional investments to the business .No rule in India says that only income from s are allowed to deposit to the bank ...He can invest additional capital ... He will say it's his income from rent or other source ...which is accounted ..lt;br/gt; Atlast the truth is ..RBI and government is really got S cre Wed when money came back to the bank is exceeded the value of the currency which were on circulation .. Demonetisation was a flop thing .nothing achieved from.it ..thank God market is back to normal
                          Reply
                          1. T
                            Tushar
                            Mar 17, 2017 at 1:05 pm
                            And Last thing . I don't disagree that government can earn some extra tax .... But that will be balanced through the deficit in collection of tax for next essment year as .alldustries are performing badly ..when business goes down naturally tax paid will be very less.. So the excess gain will be compromised with. Low collection of real tax ... lt;br/gt;lt;br/gt;Now Those who really feels.like abusing me ... Just look into the mirror and do it ... Coz this is a fact .... I analyzed it and did a.small research on it through a mid range business men ...I was literally jobless on those two months since I had faced huge crisis post demon ..I never skipped paying tax .but I had to face this
                            Reply
                            1. T
                              Tushar
                              Mar 17, 2017 at 12:45 pm
                              Bro Suppose u have lacs of monthly income .and which is recorded ...we show from where it comes in our records .but we don't show how it is spent ..do we ? No.... So he can say that income from other investments were not spent and he invested that amount in his petrol business .simple.... There are people already doing it ..No room for doubt
                              Reply
                              1. T
                                Tushar
                                Mar 17, 2017 at 12:59 pm
                                Just read my comment above the clarification I have given on petrol pump owners ... Don't think these multi millionaire are fools and they got these much of money over night ....They are more crooked than these IT fellows..and they know how to do it ... By the by I never knew for stone pelting they are buying stones for cash 😀 .... lt;br/gt; Infact terorrists attacks are progressed than before ...before they used stone and now they are fighting with AK 47 ... Maoists are giving surprising with unexpected attacks on other side .counterfiets are flowing in a plenty .... Industries are closed ... Black money also is being caught a lot ... lt;br/gt;Now don't call me anti nationalist... People are being fooled through fake explanations and datas... I work in the market .. So analyze it's pulse ... lt;br/gt;lt;br/gt;And about the money came back to bank ... It was good if the limit of withdrawal wasn't removed ..but since it is removed .cash flowed out ... And it's reached where it's supposed to be reached . only a grip wot IT people have on thesetax evaders are ..the bank statement .and with that they are forced to fight legally and it take decades to settle each case ... lt;br/gt;lt;br/gt;Demonetisation was done to grab the fund from opposition party and leave them during election and see what happened to Congress ..they didn't have fund to buy mla s n Goa and Manipur ....BJP had bunches ... In this case it was successful ..and benefited only their party .no one else.
                                Reply
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                                  Tushar
                                  Mar 17, 2017 at 1:12 pm
                                  Let's See .... We have not yet seen any thing yet ... And nothing is transparent too.. Let them disclose the amount came back to system .... Most of these funds in the bank belong to politicians
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                                    Tushar
                                    Mar 17, 2017 at 1:14 pm
                                    Mohan sir u sounds matured ..... And we all know we are here to express our opinion .. Not to judge each other ... So such a name calling doesn't look good on u ... So no one can predict whther this "Dumbo" whom u addressed won't be ur damad.. 👍 ...
                                    Reply
                                    1. T
                                      Tushar
                                      Mar 17, 2017 at 12:42 pm
                                      No Ur mom Never left a vacancy over there ..she was appointed as ever lasting pleasure artist there ..😀
                                      Reply
                                      1. T
                                        Tushar
                                        Mar 17, 2017 at 4:22 pm
                                        This should be the answer for every grievances ...
                                        Reply
                                        1. R
                                          Raj
                                          Mar 18, 2017 at 12:10 am
                                          Well, they should undertake demonitization every 2-3 years - this will force people to keep money in bank - or invest their black money elsewhere (buying - GST tax revenues boost).
                                          Reply
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                                            magesh
                                            Mar 17, 2017 at 10:07 am
                                            And also take survey in all private hospitals, (mafios in the name of life savers). still they ask to pay only in cash no more options .
                                            Reply
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