Centre’s affidavit in SC names eight account holders
The Centre on Monday revealed the names of eight black money account holders, including a company, who are being prosecuted for tax evasion. Those named are Pradip Burman, former Executive Director of Dabur India limited, Rajkot-based bullion trader Pankaj Chimanlal lodhiya and a Goa-based mining firm Timblo Private limited and its five Directors Radha Timblo, Chetan Timblo, Rohan Timblo, Anna Timblo and Mallika Timblo.
The names were disclosed as part of an affidavit filed by the Ministry of Finance in the Supreme Court ahead of Tuesday’s crucial hearing in the black money probe being monitored by the court on a PIl filed by eminent jurist Ram Jethmalani.
According to the Centre, of the names received from the French authorities, tax evasion proceedings have been launched under Sections 276C(1) and 277 of the Income Tax Act against the eight account holders.
These prosecutions are in addition to those launched against 17 persons based on information received from Germany on Indian black money accounts with liechtenstein Bank.
The Centre indicated that several other names are also being processed for tax evasion and in due course they will be made public. “Several more cases are under process and the names of persons prosecuted will become public in due course,” said the affidavit, filed by Akhilesh Ranjan, Joint Secretary in Department of Revenue.
The affidavit, however, made it clear that “unless there is prima facie evidence of wrongdoing” based on a proceeding for tax evasion in a competent court, the names and information cannot be disclosed even to the Supreme Court in a PIl proceeding under Article 32 of the Constitution.
The affidavit was filed in furtherance of an earlier application wherein the Centre expressed its reservations to reveal names of all Indians having foreign bank accounts. “There is absolutely no intention on part of the Government to withhold information, including names of persons who have stashed black money abroad,” the Centre said. However, it clarified that public disclosure could only be possible with regard to such persons against whom prosecution had been launched for tax evasion.
The Centre explained its stand by saying, “Every account held by an Indian in a foreign country may not be illegal and the fundamental right of citizens to privacy under Article 21 of the Constitution cannot be ignored.” The affidavit pointed out that if confidentiality of persons (other than those being prosecuted) was breached, there would be no further flow of information from any tax haven country in future.
With India on the verge of signing bilateral and multilateral agreements for automatic exchange of information, the Centre sought a clarification that will allow India to make a commitment to use the information given solely for tax purposes. “It will be made public only when the investigation is complete and a complaint/prosecution is filed in a competent court for tax evasion,” it said.
The Centre expressed satisfaction over the recent meeting held by Revenue Secretary with his Swiss counterparts. Not only has the Swiss Government and Swiss Federal tax Administration promised cooperation in our investigation but showed willingness to share information on a probe initiated by our Income Tax Department. For the first time, Switzerland assured to ink an automatic exchange of information agreement with India, the affidavit said.