Bhandari case: IT dept to book case under new black money Act

Bhandari, against whom the department conducted searches in April last, is likely to be summoned for detailed questioning “as early as next week” to seek his explanation on his bank transactions.

It is also likely to cover certain emails that were said to have been recovered from Bhandari, who had purportedly deleted them from his system and were recovered by the tax sleuths later, official sources said.

 Under the new anti-blackmoney law cases of overseas illegal assets, which till recently were probed under the Income Tax Act, attract a steep 120 per cent tax and penalty on undisclosed foreign assets and income besides carrying a jail term of up to 10 years.

Efforts to contact Bhandari did not fructify. The sources said registration of such a case will also enable the Enforcement Directorate (ED) to register a separate case under the stringent anti-money laundering laws.

The ED is currently probing the case under the Foreign Exchange Management Act (FEMA), under which the dealings are civil in nature.

They said the IT department is awaiting replies to some of its queries in this case from overseas locations and a case under the new law will be booked post this. Virgin Islands (BVI), the UK, the UAE, Switzerland and a few other countries in order to take its probe forward and obtain further details about the transactions and investments made by Bhandari and some companies he purportedly owned and operated.

ED has also served notice on him seeking details about his bank accounts, properties and other assets.

Sources said probe in the tax evasion and assessment of income of Bhandari and few others is on after the searches were conducted at multiple premises.