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I-T department detects benami business of running petrol outlets in Meghalaya

Our Bureau New Delhi | Updated on August 10, 2019 Published on August 10, 2019

The income tax department’s investigation wing in north eastern region carried out on Friday searches on certain businessmen in Meghalaya who were found to be involved in running a web of petrol pumps managed and controlled as benami properties.

“These persons were depriving the State Government of legitimate revenue by suppressing sales and non-deposit of local taxes collected, while also indulging in massive evasion of income tax by misusing exemption under Section 10(26) of the Income Tax Act, 1961 meant for tribal persons,” an official release said.

In the enforcement operation that commenced in the early hours and went on till wee hours of the next day, more than Rs 2 crore of unaccounted cash along with incriminating documents have been seized by officials of the Department. The cash found was hidden in unexpected places like water tanks, the release added.

This search by the Department was a much needed action on a long existing racket run by some unscrupulous elements exploiting local citizens of Meghalaya and avoiding paying income tax using tribal persons who are exempted from income tax, as a front.

The pre-search investigation involved extensive surveillance and covert enquiries which were continuing for over a year.

Published on August 10, 2019
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