Synopsis
On March 10, the Jodhpur Income Tax Department successfully sold confiscated gold biscuits to recover overdue tax dues, following the Rajasthan High Court's ruling. The auction raised Rs 3.11 crore, stemming from a case involving businessman Loknath Arora and his undeclared income, amounting to Rs 2.96 crore.Key Takeaways
- 4 kg of confiscated gold auctioned
- Generated Rs 3.11 crore for tax recovery
- Case involved undeclared income of Rs 2.96 crore
- Rajasthan High Court supported the auction
- Gold purity levels were 99.5% and 99.9%
Jaipur, March 10 (NationPress) The investigation division of the Jodhpur Income Tax Department has effectively retrieved outstanding tax dues by auctioning off confiscated gold, as per the instructions of the Rajasthan High Court.
The auction was held at the Jodhpur Income Tax Bhawan, where 13 gold biscuits—comprising three large and ten small—totaling 4 kg were sold. This auction generated Rs 3.11 crore for the department.
This case dates back to October 14, 2021, when the Income Tax Department executed a raid on the premises of a mobile business group in Bikaner. The businessman, Loknath Arora, was discovered to have undeclared income, leading to pending tax liabilities of Rs 2.96 crore. The issue was brought to the Rajasthan High Court, which ruled in favor of the Income Tax Department.
In compliance with the court's orders, the confiscated gold biscuits were auctioned in the conference hall of Pawta Income Tax Bhawan on Monday.
The gold biscuits had a purity level of 99.5 percent, while the confiscated gold coins had a purity of 99.9 percent. The reserve price was established at Rs 4,000 per 10 grams, which was lower than the current online market rate.
Eventually, the gold was auctioned for Rs 77,780 per 10 grams. During the raid at Arora’s residence, authorities seized gold jewelry, biscuits, and coins valued at over Rs 3 crore.
The confiscated assets included gold worth Rs 49 lakh declared by Arora, gold valued at Rs 4.90 lakh belonging to his wife, and gold jewelry worth Rs 2.59 lakh that belonged to his daughter-in-law. The Income Tax Department aimed to recover unpaid taxes based on these undeclared assets. Arora subsequently filed a petition in the High Court, requesting funds to settle his tax dues.
He sought permission to auction the seized gold and utilize the funds recovered during the raid to cover his debts. After reviewing the evidence, the High Court granted approval for the auction, allowing the department to recover the outstanding tax.
