New Delhi: The Income Tax department is likely to file a case against HSBC bank, Geneva, for allegedly “abetting” tax evasion in India by way of unauthorisedly operating accounts of its citizens in its overseas branch. The department has come under fire after International Consortium of Investigative Journalists revealed fresh names of people who had stashed money in Swiss branch of HSBC.
According to IT officials complaint against HSBC is likely to be filed under Section 278 of the I-T Act (abetment of false return) before March 31 as these accounts pertain to the time period of 2006-07 and would get “time barred” after that date. The I-T department has already informed Supreme Court appointed SIT on black money about its intentions. The SIT is reported to have given its assent.
“We have worked on at least four cases figuring in the HSBC lists we got from France a few years back and have gathered evidence against the bank to say that it ‘wilfully abetted’ tax evasion in India by not disclosing client information and layering it to avoid law enforcement agencies, thus leading to violation of I-T laws and evasion of huge amounts in taxes,” said sources.
