Nagpur: The income tax department has finally won the tug of war with the police over alleged bookie Anant (Sontu) Jain’s cash. More than a year ago, police had seized cash Rs70 crore and Rs11 crore worth jewellery from Jain’s premises after a sensational raid. With a court ruling in its favour, the cash and assets are expected to be shifted to the I-T department‘s possession from that of the police.The transfer is expected in a day or two, said sources.
Following a complaint by businessman Vikrant Agrawal, who claimed to have lost Rs58 crore in a betting racket allegedly run by Jain, cops had raided the latter’s premises and recovered the cash. The taxmen had been staking a claim to the cash to probe the income tax angle in the matter. The taxmen are also keen to investigate the source of Agrawal’s income, since he had lost such a huge amount in betting, and also Jain’s income.
The I-T department had moved the court seeking possession as the investigation from its side depended on getting the cash first. However, a lower court, which allowed the transfer, also laid down conditions that the department would have to park the amount in a fixed deposit account and furnish an indemnity bond against any loss or theft.
The taxmen filed a fresh plea for doing away with the conditions. With the court removing the conditions, the cash will now be transferred to the department. The I-T department will be keeping the amount in designated Personal Deposit (PD) accounts. It is not a conventional bank account, and the amount will remain in the govt exchequer till the final assessment of tax liability is completed. If any tax is payable, it is adjusted against the seized amount.
Now, with the cash in hand, the department will be initiating an investigation based on which a preliminary appraisal report will be submitted by its investigation wing. The report will form a basis to assess the final tax liability.
Sources said the income reported by Agrawal in his earlier tax returns grossly mismatches the amount he claimed to have lost. If the amount lost according to the complaint runs in tens of crores, his annual income is in lakhs, said sources.
