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Donations: I-T issues notices to AAP, Congress, 48 others

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Press Trust of India New Delhi
Last Updated : Feb 11 2015 | 4:31 PM IST
The Income Tax department today said it has issued notices to 50 entities in Delhi, which includes the Aam Aadmi Party (AAP) and Congress, to check alleged tax evasion by fake companies which issue cheques to convert black money into white.
The Central Board of Direct Taxes (CBDT), the apex policy making body of the I-T, said the taxman has taken the action after it was suspected that a number of bogus or 'entry operator' companies were converting illegal cash into legitimate money in the national capital by donating black money to parties after similar instances were detected by its sleuths in Kolkata.
The notices here, the CBDT said, were issued on February 9, a day before counting of votes in Delhi. The AAP sweeped the results as it won 67 out of the total 70 Assembly seats here and will now be forming government soon.
"The notices which have been issued in Delhi include the AAP and Congress for receiving donations worth Rs 2 crore and Rs 10 lakh respectively. The investigations wing of the department has taken up the cases based on information obtained through media reports and preliminary inquiry done subsequently," a senior I-T officer said.
The officer added that in the 48 other cases, there are instances of "routed" donations made to entities associated with some political parties that are present and are in power in some eastern and western states.
The CBDT said in a statement that the notices issued seek information about the identity of the contributors of these cheques.
"I-T department had initiated investigation into issuance of cheques by companies which are acting as entry operators to convert illegal cash into legitimate money. Recently in Kolkata, this investigation led to detection of substantial unaccounted income. In these cases, the unaccounted income was sought to be converted into legitimate money with the help of non-genuine companies which were acting as entry operators.
"Similarly and based on media reports, enquiry was initiated in Delhi into issuance of cheques by companies which were alleged to be non-genuine and entry operators. The companies and their Directors could not be traced at the addresses given to banks and Ministry of Corporate Affairs," the CBDT said.

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First Published: Feb 11 2015 | 4:31 PM IST

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