IT dept detects alleged tax evasion in Purti group transaction

The Income Tax department has detected alleged tax evasion to the tune of Rs 7 crore in the business transactions of Purti group of companies related to former BJP President Nitin Gadkari.
Probing the alleged dubious transactions of the Purti Power and Sugar Limited (PPSL) since last year, the department has completed assessments pertaining to the last two financial years and has found evasion to the tune of more than Rs 7 crore, top official sources said.
The Purti group, in its reaction, said it has not received any notice in this regard. A notice is not any indicator of any wrongdoing, it said, adding that Gadkari was not associated with the Purti group for the last two years.

"Our attention has been drawn to reports in a section of media that the Income Tax department is serving a tax assessment notice to the Purti Group for the last two assessment years. We would like to make it clear that neither the Purti group nor any functionary of the Purti group has received any notice so far," Nitin Kulkarni, PRO of Purti Group said in a statement.
"If any tax assessment notice is received, our MD Sudhir Dive in consultation with our tax advisors will give an appropriate response. However, a tax assessment notice is a routine procedure. There are different levels of appeal at various stages. The Purti group will deal with the matter.

"The tax assessment notice is certainly not any indication of wrong doing. We would like to place on record the fact that Nitin Gadkari has not associated with the Purti group from last two years," Kulkarni added.
The I-T department has begun the final scrutiny of documents of all the Purti group companies and the other assessments would be completed by the year end, the official sources said.
While preparing the final assessment orders, the department has taken into cognisance the statement of Gadkari and other senior officials of Purti group.