Blackmoney case: Court asks IT Dept to give docs to K K Modi

A Delhi court today asked Income Tax (IT) Department to supply deficient documents annexed with its charge sheet to Modi Group Chairman K K Modi in a black money case in which it has been alleged that he was attempting to evade tax by not disclosing money stashed in a Swiss bank.
The court passed the direction after the counsel for 75-year-old Modi, a South Delhi resident, submitted that some of the documents provided by the IT Department were illegible.
It asked the department to give complete copies within 30 days and fixed the matter for September 27 to record pre- charge evidence.

The IT Department had earlier too supplied copies of deficient documents to Modi, who was granted bail after he had appeared before the court which had directed him not to leave the country without its prior intimation.
The court had earlier taken cognisance of the department's complaint and summoned Modi as an accused, saying "prima facie" offence was made out against him under the provisions of the IT Act.
The complaint was filed for alleged offences under sections 276C(1)(ii) (willful attempt to evade tax), 277 and 277(ii) (false statement in verification) of the I-T Act for the assessment years 2006-07 and 2007-08 with identical allegations against the accused.

It alleged that Modi was holding an account with HSBC Bank in Geneva, which was opened on January 30, 2001.

The department claimed that a balance of over Rs 4.9 crore and over Rs 18.7 lakh was in that account for assessment years 2006-07 and 2007-08 respectively. The department further said that neither the foreign account, nor the balance was disclosed by the accused in his return of income.
It claimed a search was conducted at the premises of the accused in November 2011 and he was asked about undisclosed foreign bank account. In his statement, he had denied having any account outside India but showed willingness to pay tax, the department claimed.

It said it had issued a notice to him in July 2013 calling for details of his foreign account with HSBC Bank but he allegedly did not disclose it. A penalty of Rs 10,000 was levied on Modi for non-compliance of the department's notice, it said.
It said the industrialist had filed an application seeking stay on his prosecution, which was dismissed by the Income Tax Appellate Tribunal.