Mahesh Shah, the controversial property dealer of Ahmedabad who came into limelight after disclosure of `13,860 crore unaccounted money under Income Declaration Scheme (IDS), may face up to three years of imprisonment for providing wrong information to Income Tax department.
“As per IDS rule the disclosures are supposed to declare their own unaccounted money. Providing wrong information is not only illegal but the person involve in such activity is subject to punishment,” said a senior IT official.
Property dealer Shah has accepted that the amount declared by him was not belonging to him but he disclosed the money belonging to some ‘big fishes’ in anticipation of commission. In such scenario the guilty person is supposed to be prosecuted under Section 277 of the Income Tax Act.
“If a person makes a statement in any verification under this Act or under any rule made there under, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable,” reads the Section 277 of IT Act.
In case Shah would be proved guilty he can face rigorous imprisonment up to three years under the Act, said the official, adding that if more legal violations are then rules of the Indian Penal Code (IPC) may also apply on the property dealer.
The IT officials are questioning the controversial businessman since last Saturday but according to the officials Shah is uncooperative and not giving proper answers of their queries. In fact he has taken IT department for a ride, says an official involved in the interrogation process.
Director General of Income Tax (Investigation Wing) quoted as saying that if he would continue to be uncooperative with the officials, the IT department would be compelled to take punitive action against him.
Interestingly Shah who owns 4-BHK flat in the posh locality of Jodhpur Crossroads in Ahmedabad owes Rs. 28, 797 as taxes to Ahmedabad Municipal Corporation. IT officials are amazed that how Shah has not paid such a small amount despite declaring unaccounted income of more than Rs. 13000 crore.