Corrupt CBDT hounds Sanjay Srivastava who questioned PC KC ghotala. NaMo, restitute kaalaadhan, scrap PNotes.

While the Income Tax Department claims to have stepped up the campaign against tax dodgers, it seems a war within its own ranks has weakened the offensive to unearth black money. 

In a huge embarrassment to the department, Income Tax officials lodged a police complaint against a Commissioner of Income Tax for “unauthorised entry into the office” of the investigation wing of the department in Chennai.

According to sources, Sanjay Srivastava the Commissioner of Income Tax (OSD) had gone to Chennai from New Delhi and questioned officials of the investigation department on why they were sitting on a case of tax evasion and money laundering to the tune of Rs 100 crore related to the JD Group and Vasan Eye Care. 

According to sources, the investigation officers hit back by lodging a complaint with the police to fix Srivastava. 

The police filed an FIR in the case as the complaint was backed by a covering letter from the joint director of investigations accusing Srivastava of unauthorised entry into the office. Mail Today has in its possession a copy of the FIR. 

However, the Commissioner of Income Tax, Chennai, MS Rao, sent a letter to the Commissioner of Police Chennai stating that the case lodged against Srivastava was false and his entry into the office was not unauthorized. 

Rao’s letter to the Police Commissioner, Chennai states: “It has come to my knowledge that a false complaint has been filed before the Nungambakkam Police Station by the Office of the Director General of Income Tax (Investigations), Chennai alleging that there was an unauthorized entry into my office.” 

Rao, who was pursuing the assessment in the JD group case, was abruptly transferred from the post. He has moved the Central Administrative Tribunal (CAT) against his transfer. 

Rao has stated in his affidavit submitted to CAT on June 16, 2016 that the transfer was “to punish him for not heeding the unlawful expectations of higher officials” who wanted him to “go soft on the tax evaders and money launderers”. 

In another strange development, the Director of Investigation V Nagaprasad, who Srivastava had questioned for not following due procedure in the seizure of black money records pertaining to the JD Group and Vasan Eye Care, suddenly decided to resign from the IT Department. 

Nagaprasad is reported to have submitted his resignation on July 1, a few days after Rao filed the affidavit in CAT, and official records show that the request for voluntary retirement was approved on July 24. 

Eyebrows are being raised in the department over the rushing through of the VRS since normally it takes longer for these approvals to come through. 

Rao has also alleged in his affidavit that former UPA finance minister P Chidambaram’s son Karti Chidambaram is linked to Vasan Eye Care, and senior officials who were appointed to key positions when Chidambaram was the finance minister wanted him to go soft on the case. 

However, Chidmabaram has issued a statement, saying: “Neither I, my son nor any member of my family have any equity or investment or economic interest in Vasan Eye Care.’’ 

The Central Board of Direct Taxes (CBDT) in its comment to Mail Today stated that “the allegations against the officers of Income Tax Department for filing false FIR are baseless, malicious and mischievous. Certain elements have been spreading false stories based upon distorted and concocted facts against certain functionaries of the Govt. Such allegations have been duly examined and found to be false." 

The CBDT statement sent by Commissioner (Investigations) Ramesh Yadav further said: “As far as Mr MS Rao’s claims are concerned, the same are again incorrect and misleading. The Govt has filed counter affidavit before CAT and the matter is sub judice.’’ 

Government can not disclose facts of any case collected under the Income tax Act, except as provided under section 138 of the said Act, the statement added.