Citibank fraud – Income Tax department initiates re-assessment of investors

NEW DELHI: In a double whammy for investors who lost their money in the Rs 400 crore Citibank Gurgaon scam as the Income Tax department has initiated a re-assessment of tax returns of these people to ascertain whether the money invested was reflected in their annual returns.

The department’s various tax assessment wings will undertake the process of re-checking of I-T returns and issuing subsequent notices after a high-level probe by its investigation wing found ‘capital gains’ at the hands of some of the high-networth individuals.

“The various I-T ranges where these high-networth individuals are assessed will begin a fresh check on the tax returns. They may also be summoned for questioning and production of additional documents from the assessment year 2009-10,” a senior I-T offical said.

A capital gain is a profit that results from investments into stocks, bonds or real estate and is taxable under special rates.

A Gurgaon court has recently framed charges against former Citibank relationship manager and alleged mastermind of the scam Shivraj Puri and various others.

Different I-T offices including one in Chandigarh were involved in the probe to ascertain the flow of money and check if taxes have been evaded by these individuals– by way of non-reporting the funds that they put in the “investment scheme” or by Puri who is alleged to have duped them.

Several depositors and high-networth individuals (HNIs) were duped in the Rs 460.91-crore fraud.

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