press trust of india
NAGPUR, 13 JULY: A Bombay High Court Bench 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 Mr Justices Bhushan Dharmadhikari and Atul Chandurkar on Thursday asked Purti Sakhar Karkhana to file a reply before 5 September on the appeal filed by Commissioner of Income-Tax, Mr 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 a notice to the firm on 23 March 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.