IT demand on Hassan Ali Khan raised to Rs 60,000 crore

The Income Tax department has raised to Rs 89,000 crore its total tax demand on Hassan Ali Khan and his associates with the businessman himself having to cough up around Rs 62,000 crore.

Updated: Mar 09, 2011, 21:07 PM IST

New Delhi: The Income Tax department has
raised to Rs 89,000 crore its total tax demand on Hassan Ali
Khan and his associates with the businessman himself having to
cough up around Rs 62,000 crore.

The IT department, which earlier had raised a total
tax demand of Rs 71,845 crore on Khan and his associates, has
now included a 24 per cent penalty on this amount as the
assessment on them was made in 2008, according to department
sources today.

Investigators probing alleged money laundering and tax
evasion charges against the Pune-based stud farm owner
meanwhile are mulling to send fresh Letter Rogatories to
Switzerland.

Sources said the multi-disciplinary team of officials
from I-T, ED, Economic Offences Wing of Maharashtra Police and
RBI are now planning to obtain fresh LR`s from a Mumbai court
as they have now charged Khan under the Prevention of Money
Laundering Act (PMLA).

"The last LR obtained by the enforcement agencies from
a Mumbai court remained unhelpful as the Swiss authorities
said that the charges against Khan do not pertain to criminal
offences. No information on his Swiss accounts and
transactions was hence obtained by them," top sources involved
in the probe said.

The new LR`s citing money laundering charges could
help elicit additional information from Swiss authorities,
they said.

According to the I-T Act, a penalty of 12 per cent is
imposed each year on unyielded taxes.

The department has raised a tax of Rs 50,329 crore
against Khan, Rs 49 crore against his wife Rheema Hassan Ali
Khan, Rs 591 crore against his associate Kashi Nath Tapuriah,
RS 20,540 crore against Tapuriah`s wife Chandrika and a Rs 336
crore against a business firm related to Khan-- R M Investment
and Trading Company Private Limited.

The investigators are also pinning their hopes on the
only "substantial" transaction of Khan which they have
received "full information"-- to take their case forward.

The transaction involves alleged transfer of USD
700,000 from the Bank of Sarasin to Citibank in New York from
which it was moved to Barclays in the UK.

"This is a ray of hope for us in the entire case as
proof in other cases of transactions is still not complete,"
they said.

The joint probe team, with its base in Mumbai, is
also scrutinising classified information received by the
foreign taxation wing of the CBDT on Khan`s transactions from
the US and the UK.

The wing has received exhaustive details on the
alleged investments made by Khan to the tune of crores of
rupees under the Double Taxation Avoidance Agreement (DTAA)
with both the nations.

The agencies are also looking for Khan`s properties
abroad to attach them for penal proceedings as he reportedly
does not have many properties in India.

PTI