Be the first to like this
AHMEDABAD: Do you think twice before submitting your identity proof documents to your employers? Or carefully read all documents your employer makes you sign? If not, Shivnath Patel's story is sure to send shivers down your spine. Patel, a plumber, received an Income Tax notice to explain a Rs six crore transaction from his bank account to purchase 69,000 shares of Alps BPO Services in 2002-03. Patel initially thought the notices were sent to him by mistake and returned them twice. He took it seriously only in December last year when he got a call from the I-T department. Officials questioned him about the financial transactions he had made as director of a realty firm. Patel worked as a daily wager earning Rs 5,000 a month. His world came crashing down when he found out that it was alleged that he had purchased shares worth Rs 6,95,48,390 as director of a realty firm and would have to pay taxes on the same. Patel had joined a city-based firm on Ashram Road in 1998 as a peon-cum-sweeper with a monthly salary of Rs 1,500. However, the I-T notice named him as director. "I have studied only till class XII and with a friend's help I replied that I was not aware of any transaction and had never purchased any shares. But the department didn't believe I was working as a sweeper in the company. I contemplated suicide a couple of times when people told me the officials would confiscate my flat, cycle and plumbing tools to collect tax on the Rs 6.95 crore transaction. I told officials I would jump from their office building to prove I was right," said Patel. I-T officials said that company records showed him as director and they had also sent notices to another director. But he replied stating he had resigned much before the transaction took place. "The boss took my photo identity documents to open a salary account. They later made me sign blank cheques claiming it was necessary if I wanted to work with the company. I came to know about the clandestine operations when Comos Co-op Bank sent me a letter last year saying they would close my account as the minimum balance was not maintained," said Patel. Sources with I-T department said that even if officials prima-facie believe Patel, they will have to go by the details on paper, which shows the purchase of share while he was director of the company
Clipping is a handy way to collect important slides you want to go back to later.