IT DEPT INVESTIGATES INTO UNREPORTED ACCOUNTS WITH HSBC GENEVA IN A RUSH

IT DEPT INVESTIGATES INTO UNREPORTED ACCOUNTS WITH HSBC GENEVA IN A RUSHThe income tax department is rushing up with tax assessment of some of the 700 Indians who had unreported accounts with HSBC Geneva, instead of doing a thorough investigation, said a senior tax official. The tax office appears to be in a hurry to assess and regularise income of some taxpayers who had unreported accounts with HSBC Geneva, though the department has at least 18 months to investigate and ascertain the actual extent of their unreported income, the official alleged. What the income tax department did is not correct. They should have investigated thoroughly to find out more information about the unreported accounts, said a senior income tax official, who does not wish to be named. During November-December, the I-T department had issued notices to all 700 account holders under section 148 of the income tax Act for alleged tax evasion. While the department has already completed assessment in some cases, certain others are likely to be completed soon. Interestingly, some of the persons charged of tax evasion had volunteered to reveal their accounts with HSBC Geneva and revise their returns, weeks before the list was handed over to the tax investigation wing. Senior officials said most of the cases where the I-T office is trying to needlessly expedite the process of assessment are of the persons who had revised their returns, possibly in anticipation of coming under the tax departments lenses. When contacted by ET, a spokesperson of Central Broad of Direct Taxes (CBDT) said, These queries raised by you relates to ongoing investigations, about which CBDT has no comments to offer. These matters also covered by the confidentiality provisions under the DTAAs India have with other countries. Therefore, no information is to be disclosed to any person. - www.economictimes.indiatimes.com