I-T dept slaps notice on Ulhasnagar civic body

Updated: Dec 18, 2016, 14:28 IST | Laxman Singh

Massive property tax collection of Rs 45 crore by UMC has raised suspicions of residents getting rid of black money

Rajendra Nimbalkar
Rajendra Nimbalkar

Smelling a rat in the property tax collection by the Ulhasnagar Municipal Corporation (UMC), the income tax department has initiated an inquiry and sent a notice to the corporation. The department has also sought documents of those who have paid long pending dues.

According to sources, the I-T department is trying to net people who have used their black money to pay their pending taxes. After the demonetisation announcement, many property tax defaulters of UMC cleared their dues within days.

On November 17, mid-day had reported that after demonetisation, around 50,000 property tax defaulters had settled dues of Rs 25 crore within a week to get rid of banned currency notes. Latest figures show that to date, the Ulhasnagar civic body has collected Rs 45 crore from defaulters. On November 30, the assistant director of I-T department from Kalyan division, issued a notice under Section 131 of the I-T Act to the chief officer of UMC. The Act empowers authorities to conduct inquiries, summon persons and compel production of book of accounts and documents.

Rajendra Nimbalkar, municipal commissioner of UMC, confirmed the development and added that they had raised an objection to the I-T notice. Nimbalkar said, "We have got the notice from the I-T department and have submitted a reply to them," he said, adding that the department will tally the income shown by the defaulters and the amount paid in the form of pending dues to the corporation in the last one month.

"I wonder what made the tax department send a notice to the corporation. This move may affect the pending tax collection," he continued. According to sources, some officials might have helped traders and other property tax defaulters to convert their black money into white by settling their dues.

CBI files case against railway official
Meanwhile, the Central Bureau of Investigation (CBI) has registered a case against KL Bhoyar, assistant commercial manager, Central Railway, for allegedly exchanging old notes with new at ticket counters at CST and Kalyan station.

A case against Boyar under relevant sections of Prevention of Corruption Act has been filed. As the assistant commercial manager (coaching), Bhoyar had exchanged old notes of around Rs 8.22 lakh with new currency notes of Rs 2,000 and Rs 100 notes. "The government had allowed, until this month, for railways to accept old notes. He took advantage of that and got his own old notes exchanged," said the CBI officer.

During a search at his Parel home, officers found cash of Rs 2.2 lakh (in R100 notes), and documents of fixed deposits worth Rs 30 lakh and several properties, which are under scrutiny, said the CBI official. He has not yet been taken into custody.

With inputs from Vinay Dalvi

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