In response to a significant tax demand of Rs 8.26 crore, the Income Tax department has frozen the bank account of Mahila Utkarsh Pratishthan trust, which is under the supervision of Shiv Sena MP.
The trust is linked to the Shiv Sena MP Bhavna Gawli. A formal notice was dispatched to the branch manager of a nationalised bank located in Wasim, where the trust maintains its account. The notice explicitly stated that the trust is liable for Rs 8.26 crore in unpaid taxes, covering the assessment years spanning from 2013 to 2016.
Utilizing the authority granted by Section 226(3), the income tax officials have instructed the bank to expeditiously remit any amount held on behalf of the trust, ensuring compliance with the specified arrears. This regulatory provision places the onus on the payer to deduct tax at the source and furnish the necessary tax deduction certificate, thereby guaranteeing the punctual and efficient remittance of taxes to the government.
Preceding this action, the Income Tax investigation wing had summoned the trustees, seeking an elucidation regarding potential instances of tax evasion. Several years ago, Bhavna Gawli’s tax returns and those of the trust underwent reexamination by the tax department following the emergence of new evidence pointing towards the suppression of income.
The decision to reopen the assessment case stemmed from an FIR filed by Bhavna Gawali against former office-bearers of the trust, alleging misappropriation of Rs. 18 crore and the forcible withdrawal of Rs. 7 crore in cash from the trust’s office.
The MP Bhavna Gawali clarified that, despite her role as the head of the education society, the authority for transactions rested with the Chartered Accountant and the then-secretary of the society, reported TOI.
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