Kozhikode: Those who tried to fool the Income Tax (IT) department by depositing huge sums of unaccounted money in co-operative banks may be in for trouble. The department has sought the details of account holders with deposits of more than '5 lakh in the banks. It is believed that a major chunk of the unaccounted money in the state is deposited in the co-operative banks.
There was a tussle when the cooperative banks formed the ‘Kerala cooperative banking sector protection committee’ to coordinate the resistance against the move. District president of the action council Mambatta Sreedharan, president of Chelannur primary service co-operative bank, told Deccan Chronicle that the move is to protect the constitutional privilege of the co-operative sector which has been exempted from income tax.
“We are not bound to submit the details of our customers to the IT department. Many of the banks have handed over the list but the move would bring a bad name to the sector,” he added. Sources in the cooperative sector told DC that plans are afoot to legally oppose the move tooth and nail. Preliminary discussions were already held with a leading counsel in Delhi, it is learnt.
Kozhikode IT commissioner P.N. Devadasan told Deccan Chronicle that till last year, the co-operative banks were not providing information regarding depositors. “But now they are bound to give it as they have lost a series of legal wrangles over the issue,” he added. Mr Devadasn also said that the IT department will initiate action against erring depositors as well as banks under the Money Laundering Act.
Meanwhile, the Kozhikode IT commissionerate has launched strict measures against individuals as well as banks for depositing unaccounted money.
Kozhikode IT commissioner P.N. Devadasan told DC that till last year, the co-operative banks were not providing information regarding depositors. “But now they are bound to give it as they have lost a series of legal wrangles over the issue,” he added. Mr Devadasan also said that the IT department will initiate action against erring depositors as well as banks under the Money Laundering Act.
Mr Devdasan said that a recent investigation of the IT department had hit upon a case in which an advocate in Taliparamba deposited '3 crore in 94 accounts in 6 different co-operative banks. Another contractor of Kozhikode deposited '10 crore in a co-operative bank in the name of himself and his relatives,” he said.
