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Mar 04, 2011 at 12:53pm IST

I-T tribunal issues showcause to Hasan Ali

New Delhi: The Income Tax department issued a showcause notice to India's biggest tax defaulter Hasan Ali for non payment of penalties worth 40,000 crore on Friday - just a day after the Supreme court pulled up the government for inaction.

The Income Tax tribunal issued a showcause notice Hasan Ali asking why proceedings should not be initiated against him.

He has been asked to reply to the notice within 15 days.

Pune-based real estate consultant and stud farm owner Hasan Ali is India's biggest tax defaulter. He could choose to reply to the I-T tribunal's notice or to challenge it by moving the high court.

Ali has already been interrogated by Enforcement Directorate in Mumbai over cross border transaction.

Hasan Ali likely to appear before ED on March 7

Hasan Ali Khan is likely to appear before the Enforcement Directorate on March 7, sources said.

The agency recently sent a notice to Khan, who is under investigation for money laundering and for allegedly transferring cash/valuable assets outside the country by unlawful means with the help of foreign nationals.

Khan had appeared before I-T authorities on February 18 apparently in connection with notices issued to him on December 31, 2008, over alleged huge tax evasions following undisclosed funds in several foreign bank accounts, including $ 8 billion in an account in the Zurich branch of UBS.

However, UBS had denied any business relationship with Khan.

Tax enforcement agencies are now trying to locate properties of Khan abroad which could be attached or auctioned to extract from him a huge tax liability to the tune of Rs 40,000 crore.

Earlier, in January 2007, the I-T department had raided Khan's residence at Koregaon Park in Pune and had seized documents that showed that he had USD 8.04 billion in a UBS account in Zurich.

The raid followed a revelation that Khan had allegedly concealed his income and not filed income tax returns since 1999. The department had also raided his properties in Mumbai and Hyderabad.

Earlier Hasan Ali was slapped a Rs 40 thousand crore fine for evading tax.

(With additional information from PTI)

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