New Delhi, Nov 10 (PTI): The Income Tax department today conducted multiple raids in Delhi, Mumbai and other cities in the wake of reports of alleged profiteering and subsequent tax evasion by traders by converting withdrawn currency notes in an illegal manner.
Interestingly, the operations (surveys) were launched from the evening as the taxman wanted some hard cash to get accumulated at the payment counters to make the action effective.
Officials said the operations are being carried out at least at four locations in the national capital including popular market places like Karol Bagh, Dariba Kalan and Chandni Chowk, three locations in Mumbai and few others in Chandigarh and Ludhiana.
Till reports came in, similar survey operations by I-T authorities are also understood to have been launched in two south Indian cities.
Sources said the department had received "actionable inputs" that some traders, jewellers, currency exchanges and hawala dealers were allegedly exploiting the recent currency demonetisation of Rs 500 and Rs 1,000 notes and were changing currencies at "discounted" prices, thereby profiteering illegally.
They said the operations were planned after CBDT Chairman Sushil Chandra yesterday asked all the investigation units in the country to keep a check on suspicious movement of huge cash and other illegal transactions leading to tax evasion.
Officials added that almost over 100 tax sleuths along with police officials have been roped in for the survey operations.
At few places, they said, some preliminary documents have been seized.
Finance Minister Arun Jaitley today assured people that taxman will not hound those making small deposits in scrapped Rs 500/1,000 currency adding, however, people with "large amounts of undisclosed monies will have to face the consequences under the tax laws".
Top I-T department officials had yesterday said the government's directive to them is "very clear", saying any instance of tax evasion and black money should be dealt with strictly, especially after two opportunities in the form of one-time stash declaration window has been provided.
In a surprise move, Prime Minister Narendra Modi had on November 8 announced demonetisation of Rs 500 and Rs 1,000 notes and introduction of the new Rs 500 and Rs 2,000 ones with additional security features.
Demonetisation challenged in courts, Centre files caveat in SC
A slew of petitions against demonetisation of Rs 1,000 and Rs 500 notes have been filed in various courts including in the Supreme Court where the Centre today filed a caveat that it be heard before any order is passed.
The apex court indicated that it may hear on November 15 the plea challenging the government decision while a PIL in this regard was dismissed by the Madras High Court.
The Madurai Bench of the High Court while dismissing the PIL seeking scrapping the ban of the high denomination currency on the ground it cannot interfere in policies related to monetary system observed that the government decision is fit for the country's security and development.
A vacation bench of the Bombay High Court refused to entertain the petition on demonetisation, saying the petitioners should move a regular bench after November 15 as it involved questions of law.
The Centre filed a caveat in the apex court registry, saying that it be heard if the court entertains and passes some directions on petitions against demonetisation.
"Let it be listed on Tuesday if the petition gets numbered by the registry," a three-judge apex corut bench headed by Justice A R Dave said when a lawyer today sought urgent hearing of his plea on the ground that demonetisation iscausing a lot of problem to the common citizens.
The plea was mentioned by advocate Sangam Lal Pandey who has filed the PIL in his personal capacity.
He has sought quashing of the November 8 notification of the Department of Economic Affairs (DEA) of Finance Ministry on the ground that the common public has not been granted sufficient time and as a result they are facing a lot of hardship.
The PIL has also sought a direction to the Centre that sufficient time be given to the citizens for exchanging the demonetised currency notes.
Besides this petition, another plea was filed yesterday in the apex court seeking quashing of the decision to demonetise Rs 1,000 and Rs 500 currency notes, contending it infringed on citizens' right to life and to trade, among others.
The PIL filed by Delhi-based lawyer Vivek Narayan Sharma, which could be listed for hearing during the week, has termed the notification of DEA as "dictatorial", claiming it did not grant reasonable time to citizens for exchanging the specified bank notes to legitimate notes.
The Madras High Court while dismissing another PIL observed that big currency notes were used to fund terror activities and that black money was harming the economy of the country.
The action of the government is fit for the country's security and development, it said.
Though the government's action caused some inconvenience to people, it had been taken for the welfare of the country and was being implemented with the cooperation of various sections of people, the bench said.
The court rejected the PIL by petitioner M Seeni Ahamed, state General Secretary of the Indian National league, on the ground that it cannot interfere in the policies of the government related to monetary system.