Blackmoney case: Income-tax department files case against KK Modi

NEW DELHI: The income-tax department has filed prosecution proceedings against KK Modi, president of Modi Enterprises, for alleged concealment of income. Additional chief metropolitan magistrate Deepak Wasson on Friday took cognizance of two complaints filed by the tax authorities and summoned Modi to appear before the court on April 25, a top I-T source told ET.

The department has initiated prosecution under various sections for the assessment years 2006-07 and 2007-08. Modi’s name allegedly figured in the HSBC list but he has denied knowledge of this account and paid taxes of around Rs 2 crore, to avoid “protracted, costly litigation.” “When the Swiss account doesn't belong to me, I have no locus to sign the consent form. ITD must show that the account belongs to me. What they are referring to is an unauthenticated, unsigned document. I’m not legally competent to sign the form, and you (ITD) can’t force an assessee to sign the form," Modi’s lawyer Ajay Vohra had stated before the Income Tax Appellate Tribunal (ITAT).

However, according to income tax commissioner Sulekha Verma, the account belongs to Modi. “On the Swiss account papers, Mr Modi's address is there, mobile number is there, and when a search was conducted, he conceded and paid taxes but is now refusing to own up the transaction and sign the consent form,” Verma said.