Hyderabad: After a two-day investigation of the Banapuram Laxman Rao case, income-tax officials have filed a report stating that his Rs 9,800 crore-declaration is fake. I-T officials will file a final report to this effect with the Income Tax commissioner for Range-14 of Hyderabad city.
The taxmen had begun the probe after Rao, who declared having Rs 9,800 undisclosed income under Income Declaration Scheme, failed to pay the first installment.
An I-T official said that the only intention behind the declaration was money laundering and a case would be registered against Rao and four others including ‘Barkas Baba’ alias Shoukat Ali, an Old City godman, by the en-forcement directorate.
“The ED will look after the money laundering investigation and hawala links of Barkas Baba. We shall take action against Laxman Rao for submitting a fake declaration under the Income Tax Act,” he said.
Although the IDS Rules, Part-II sections 3(ii), S.O.2705 (E), sub sections 1 and 2 of 199 of the Finance Act, 2016, says, “In case of non-payment of the amount as specified, the declaration shall be treated as void and shall be deemed never have been made.”
This enables officials to take severe action against persons with false declarations.
An official said the circular also says that any person with false declaration might face penalties and prosecution under I-T Act. “For submitting false statements to the I-T department, one can be punished under section 277 of I-T Act. There are two sub-sections in section-277. Rao may face the second sub-section of 277,” he said.
