Black money: SIT directed to file progress report by Oct 7
4 Sept 2015 5:56 AM IST
The Supreme Court on Thursday asked the Special Investigation Team (SIT) on black money to submit the fourth report on the progress of its probe by October 7 and sought to know from the Centre about the steps taken to implement SIT’s recommendations to bring back illegal <g data-gr-id="76">moneys</g> stashed in foreign banks.
“The Attorney General will tell us what the Centre has done on the recommendations of the SIT,” a bench comprising Chief Justice H L Dattu and Justices M B Lokur and A K Sikri said while posting the hearing for October 28. Senior advocate Dushyant Dave, appearing for the SIT, informed the bench that the subsequent report on the progress of investigation would be complete by the month end and sought its nod to place before the court in October.
His request that Attorney General Mukul Rohatgi be asked to inform about the action taken by the Centre on SIT’s recommendation was also accepted by the bench. Advocate Prashant Bhushan raised the issue of SIT’s third report submitted to the apex court in May and claimed that some portions of it have emerged in newspapers which made reference to Participatory Notes (P-Notes) for investing around Rs 3 lakh crore in the stock market. However, the bench, which perused the report, <g data-gr-id="63">said</g> “we don’t think that is there in the report. May 2015 report is the last report we have received”. P-Notes are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in the Indian stock markets without registering themselves with market regulator SEBI. While Bhushan was making his submission, the Attorney General objected saying he had no locus in the matter.
Declarations under black money window to remain confidential
The government on Thursday promised confidentiality of information furnished under the black money compliance window and said declaration for years for which bank statements are unavailable can be made on best estimate basis. Issuing the second set of 27 FAQs on voluntary disclosures to be made in the 90-day compliance window ending September 30, the Finance Ministry provided a detailed methodology for computation of value of foreign properties, shares and other financial and non-financial assets. It also <g data-gr-id="68">detailed</g> treatment of income of non-residents after moving back to the country and as well as <g data-gr-id="69">applicability</g> of Double Taxation Avoidance Agreement (DTAA) provisions. Responding to questions on confidentiality of information disclosed under the compliance window, it said, “the information in respect of declaration made is confidential as in the case of the return of income filed by the assessees.” For periods for which bank statements of foreign accounts were unavailable, the FAQ said, “the person may compute the value (of account) of such period on best estimate basis.” The account holder, however, will have to furnish a certificate of the bank or any other evidence to the effect that the details are not available. At the same time, the government cautioned that if it was found later that the value of bank account was different from what had been declared.
SIT recommends steps to curb laundering
The Supreme Court-appointed Special Investigation Team (SIT) on black money has come out with a slew of recommendations to curb various ways of money laundering, including misuse of exemption on long-term capital gains tax, Participatory Notes and creation of shell companies.
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