HSBC Swiss bank account holders might get spared by the I-T deptt

Advertisement

HSBC Swiss bank account holders might get spared by the I-T deptt

Advertisement

Many names emerged as suspicious for opening secret bank accounts with HSBC Switzerland during a five-year-long cat and mouse chase by the I-T department. However, two of the recent rulings have lead to several of these names being dropped from the suspicion list.

First is the case of industrialist Shyam Sundar Jindal, for which the tax tribunal asked the I-T department to have a second look at the matter in lack of substantial evidence.

Next is the case of Bishwanath Garodia, a Kolkata-based businessman, whose appeal was upheld by the I-T appellate tribunal, since no incriminating document relating to the Swiss bank account was found in the search operation.

Also read: Dubai no longer a tax haven! Indians rush to hide undeclared wealth

In Jindal’s case, the Delhi bench of the tribunal said that even though the assessing officer told Jindal about his bank account details being obtained under India's treaty with Switzerland, the assessment order contradicts this fact, saying that the requisite information was not received from the Swiss Banking Authority.

Jindal's counsel has alleged that his name was added by the tax department solely on the basis of photostat copies of loose sheets of paper which were supposed to be the appellant's bank statement. He added that the papers looked more like printouts of a spreadsheet rather than a valid or authenticated bank statement.

Also read: Taxpayers should not fear harassment, Modi asks officials

Advertisement

Several others have also laid a similar argument, that the basic data on which the tax office is relying upon was stolen and never backed by either the bank or the Swiss government. More so, they were also denied their right to cross-examine the person who had given the information to the tax department.

In Garodia’s case, he said that he didn’t have any bank account with HSBC, adding that he was under extreme pressure because of the I-T department's search and seizure action, having signed whatsoever was dictated.

The question that stands now is: Will the Swiss authorities be sharing any possible information on cases like Jindal and Garodia, against whom the I-T department has no concrete evidence?

As per the treaty, India can approach Switzerland for such information only after it has completed all its normal procedures under its domestic laws, since it doesn’t allow fishing expeditions against a given taxpayer.


Advertisement

Advertisement
(Image source NewsWeek)
{{}}