HC notice to Purti Group firm on I-T plea in tax case
The Bombay HC has issued a notice to a sugar firm linked to BJP leader Nitin Gadkari-founded Purti Group on an Income Tax Department appeal.
Nagpur: The Bombay High Court has issued a notice to a sugar firm linked to BJP leader Nitin Gadkari-founded Purti Group on an Income Tax Department appeal in a case of submission of alleged incorrect financial details.
A division bench comprising justices Bhushan Dharmadhikari and Atul Chandurkar on Thursday asked Purti Sakhar Karkhana to file a reply before September 5 on the appeal filed by Commissioner of Income Tax Mayank Priyadarshi.
Four more such appeals by the I-T Department against Purti are likely to come up for hearing next week.
After the I-T Appellate Tribunal ruled in Purti`s favour in a tax evasion case, the Department filed five different appeals in the Nagpur Bench of the High Court.
The case related to the period between 2001 and 2007 when Purti is alleged to have submitted incorrect financial details following which it was asked to pay a penalty of Rs 4-5 crore.
According to I-T counsel, Purti Sakhar had allegedly submitted incorrect particulars of income from 2001-02 to 2006-07. The Department conducted search operations in 2006 and issued notice to the firm on March 23, 2007.
In its reply, Purti Group submitted the particulars of income. However, the department maintained those were not properly accounted for.
After an enquiry, the department officials found that there was a variation of Rs 10.5 crore in income under the `capital work in progress` head. Purti admitted to it and agreed to pay the required tax.
The department, however, levied a penalty to the tune of Rs 4 crore-5 crore on the company. Purti challenged the decision in the Commissioner of Income Tax (CIT) Appeals which ruled in its favour by deleting the penalty on May 28, 2010.
The department went in appeal before I-T Appellate Tribunal (ITAT) but it was dismissed on December 12, 2012. The Income Tax authorities then approached the HC contending that Purti had furnished inaccurate particulars of income.
When contacted, Purti Group Public Relations Officer Nitin Kulkarni said they were yet to receive the notice.
Gadkari resigned as BJP President in January this year after Purti Group companies faced allegations of dubious fundings and came under the I-T Department scanner.