A senior official from the Central Board of Direct Taxes (CBDT) announced that the deadline for disposal of assessment cases under Operation Clean Money (OCM) which leverages data analytics to investigate tax evaders is likely to be extended from the present deadline of December 31, owing to the present heavy workload. The deadline for the cases was in July at first but was pushed to September 30 and then to December 31. The Operation Clean Money (OCM) initiative was launched by the Income Tax Department (CBDT) for e-verification of large cash deposits made during the demonetisation period from 9th November to 30th December 2016. The programme, which was launched on 31st January 2017 and has entered into the second phase in May 2017 has identified 17.92 lakh and 5.6 lakh cases in both the phases respectively.
The cases identified by the Income Tax Department included the cases where the cash transaction did not appear in line with their tax-paying profile. Agency sources have also cited that despite efforts and deadlines set, the CBDT department has not been able to dispose of OCM cases largely due to the non-compliance of taxpayers. Taxpayers have not been responding to the notices sent and the other reason for the delay in disposition is the delay in getting relevant information from the banks where huge cash was deposited during the demonetisation exercise, sources told ANI. At a recent outreach programme, PK Gupta, Principal Chief Commissioner of Income Tax Department heading Uttar Pradesh (West) and Uttarakhand region, stated that out of 3,900 OCM cases, more than 1,500 cases were disposed of by mid-October. The CBDT believes that the OCM will help eliminate black money and widen the tax base.
The Operation Clean Money was launched primarily to verify cash transaction status of taxpayers during the demonetisation period and to take tax enforcement action if transactions do not match the tax status of an individual. According to the Income Tax Department, OCM is fair, transparent and non-intrusive tax administration. As mentioned, the OCM has two phases so far and updates in the form of OCM status are published by the ITD accounting the action taken on the accounts revealed.
(With ANI Inputs)