Congress's Rajya Sabha MP Dhiraj Sahu, from whose premises a record haul of Rs 350 crore cash was seized by the income tax department last December, has revised his returns for the previous year and paid tax on Rs 150 crore. The businessman-turned-politician argues that some of the recovered cash relates to business conducted during the current financial year, for which returns are to be filed in the next financial year. On the remaining amount, Rs 50 crore remains unexplained, and the tax department will levy penalty and tax, according to sources.
The Congress MP has stated that the cash was part of 'business turnover'. "They have been unable to explain anything about the Rs 50 crore from the overall cash pile and will have to pay tax and penalty. We will see the returns for when they are filed in July," they added. Revision of returns is allowed under the income tax rules to correct mistakes or any details left out in the original tax return.
The search operation undertaken by the I-T department at premises in Odisha and Jharkhand linked to Sahu in December had resulted in the seizure of undisclosed cash amounting to more than Rs 351 crore, as well as unaccounted jewellery exceeding Rs. 2.8 crore. This was the largest ever cash haul by the income tax department.
A statement issued by the department after the operation was completed had said that a substantial part of the Rs 329 crore cash was unearthed and seized from obscure and dilapidated buildings, hidden chambers at the sites, and a hidden safe-house camouflaged as an unoccupied/nondescript residence located in small towns of Odisha including Sudapada and Titlagarh in Bolangir district and Khetrajrajpur in Sambalpur district.