SC on Black Money Condemns Centre for not acting
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SC on Black Money Condemns Centre for not acting

Bar & Bench

The Supreme Court has once again questioned the burning issue of black money stashed abroad and has criticized the Government for not acting against the black money hoarders. The Court has questioned the Government as to what is stopping it from carrying out the interrogation of businessman Hasan Ali Khan, accused of tax evasion along with others even though the Government has enough evidence against the evaders.

The Supreme Court has once again questioned the burning issue of black money stashed abroad and has criticized the Government for not acting against the black money hoarders. The Court has questioned the Government as to what is stopping it from carrying out the interrogation of businessman Hasan Ali Khan, accused of tax evasion along with others even though the Government has enough evidence against the evaders.

A Bench comprising of Justices B. Sudershan Reddy and S.S. Nijjar ordered that the three key Enforcement Directorate (ED) officials, who were allegedly transferred midway through a probe into a case of alleged foreign exchange violation by Khan, should be immediately reinstated. The Bench further indicated that if the Government failed to act, the Court would be compelled to appoint a special officer for supervising the probe.

The Telegraph reports Khan, is alleged to having stashed around $8 billion (Rs. 38,400 crore) in foreign banks and has been served a tax notice for about Rs. 50,000 crore ($11 billion). Khan has also been issued a ‘Look Out Circular,’ to prevent his escape from the country.

The Court yet again stated its dissatisfaction, and expressed disappointment towards Solicitor General Gopal Subramanium for avoiding answers on behalf of the Government.

Bar & Bench spoke with Jogendra Singh, Senior Advisor Tax at J. Sagar & Associates on the issue of tax evasions in India.

Speaking to Bar & Bench on the matter of tax evasion in India, Senior Advisor Jogendra Singh said, “Greed is the main reason, nobody wants to pay taxes. It’s the greed for money. The Government is stopping and doing possibly what it can to stop tax evasions. I personally feel it’s the duty of the Government to detect the matters of black money and take action. Nobody is stopping the Government; the law does not say that you must not act if you come across any case of tax evasion or black money and it is the duty of the Income Tax department to take the appropriate action”.

Bar & Bench previously reported, the Supreme Court is taking no excuse for stashing black money abroad and wants answers from the Government. The Writ Petition has been filed by Senior Advocate Ram Jethmalani, Subash Kashyap and K.P.S. Gill.

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