The Income Tax (I-T) Department has claimed that it has found concealment of wealth by some taxpayers, after reopening certain assessment cases on the basis of information received from German tax authorities.
In certain cases, assessees have not disclosed details of movable and immovable properties owned by them. An initial probe was initiated in cases related to wealth tax and others, official sources said.
They said the investigation had revealed that assessees had not reported details of transactions in foreign countries during filing of tax returns.
Recently, Minister of State for Finance S S Palanimanickam, had told the Rajya Sabha that the German tax authorities had provided to the Indian government information available with them regarding accounts concerning Indian nationals with the LGT Bank of Liechtenstein.
“Assessments have been reopened under the Income Tax Act 1961, in all these cases,” he said.
In appropriate cases, assessments have also been reopened under the Wealth Tax Act, the minister had said.
The information from the German tax authorities was provided under the article concerning exchange of information of the Double Taxation Avoidance Agreement (DTAA) between India and Germany, he had said.
Sources also said the department would also share information with other enforcement agencies to trace other accounts and transactions which have been left unexplained.