Madhya Pradesh: Man with monthly income of Rs. 53,000 slapped with Rs. 113 crore I-T demand notice for alleged transactions

A man from Bhind, Madhya Pradesh, who earns a monthly income of ₹53,000, was issued a demand notice by the Income Tax Department to pay ₹113.83 crore for alleged transactions of ₹132 crore in his account in 2011-12.

The department claimed that Ravi Gupta, a resident of Bhind, is a promoter of Tiya Traders, a diamond trading company registered as a firm in Surat and Mumbai. Gupta denied the allegations, stating that he is a victim of a fraud racket. Gupta received a similar notice from the income tax department on March 28 despite an inquiry being initiated by the Prime Minister's Office (PMO).

Gupta stated that he received a notice from the Income Tax Department in 2019 asking him to pay ₹3.49 crore in penalties for 2011-12 when he was working at a BPO in Indore and earning a monthly salary of ₹7,000. He asked the department to correct the mistake, but he was shocked when he received a notice of ₹113.83 crore.

Gupta has filed complaints with the Directorate of Enforcement and the Central Bureau of Investigation (CBI), but no investigation has been initiated despite similar cases coming to light. CBI Bhopal office has forwarded his complaint to the Economic Offence Wing Gwalior. Gupta is appealing against the recent demand notice, stating that the notices are mental harassment.

Two of Gupta's colleagues, Kapil Shukla and Praveen Rathore, received similar notices for 2011-12. The notice warns that if the tax amount is not paid within the specified period, a penalty may be imposed. The notice further states that if an appeal is intended, it may be presented to the National Faceless Appeal Centre within thirty days of the receipt of the notice. Gupta's case highlights the need for a more transparent and accountable system to prevent such harassment by the tax authorities.