Mumbai: The Income Tax Appellate Tribunal (ITAT) Mumbai has ordered the Income Tax assessment officer to share findings of the probe into ₹1680 crore money laundering scam with the Enforcement Directorate (ED) and market regulator SEBI which involved over 32,000 beneficiaries of the black money racket.
The tax tribunal directed the IT department to provide details of the 32,855 individuals and entities involved in money laundering rigging stock markets scrips within 90 days to ED and SEBI for further investigations under provisions of anti money laundering, Income Tax, Securities, corporate and banking laws.
Incriminating Data Seized From Naresh Manakchand in IT Raid
The beneficiaries had availed the services of accommodation entries in converting unaccounted income into long term exemptions of capital gains, short term capital gains and business losses provided by a cartel led by kingpin Naresh Manakchand Jain.
IT sleuths had raided Jain and seized incriminating data of ₹1680 crore laundered in nine scrips with bogus accommodation entries.
Jain Accused of Providing Bogus Long Term Capital Gains
The tax tribunal bench of Sandeep Singh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) observed that Jain was a kingpin providing bogus long term capital gains in connivance with directors of companies whose share prices were rigged to help beneficiaries to convert unaccounted income into alleged capital gains in shares.
The evidence was gathered during the search, showing links between the operators, promoters, share brokers, exit providers, and intermediaries who facilitated the sham transactions on the stock exchanges.
