Income Tax dept showcauses Hasan Ali

The Income Tax (I-T) department on Saturday slapped a showcause notice to India?s top tax evader Hasan Ali Khan.

The I-T has asked Khan why criminal proceedings should not be initiated against him.

In a major setback to the Enforcement Directorate (ED), a Mumbai court on Friday granted bail Khan.

Saying that the ED has failed to provide adequate evidence against Khan?s money-laundering, the court said the agency will not be given his custody.

The court on Thursday had adjourned for one more day the hearing into the plea of the ED seeking remand of Khan.

The sessions court had pulled up the ED on Wednesday for preparing a ?sloppy? case against Ali, while seeking 14 days’ remand.

But on Thursday the ED sought ‘time to probe to bring the case to logical conclusion?.

ED said Ali was not cooperating with them despite questioning for 18 times.

ED said it has to send a status report to the Supreme Court too on the matter, though the defence counsel opposed to an ED remand on that ground.

Principal Sessions Court judge M L Tahaliyani had sent the accused to ED?s custody for just one day on Wednesday and asked the agency to return with a more solid case against the him.

?You have not been able to make any case and you want me to hear you. If you want to do some homework, you can take time,? Tahaliyani said.

The ED counsel submitted before the court that Ali?s purported links with international arms smugglers need to be properly probed as it is a issue concerning national security.

Hasan Ali Khan was arrested by the ED on Monday.

He had on Tuesday claimed that he was ?innocent? in the black money hoarding case even as the Supreme Court mulled slapping anti-terror laws against Khan and other such criminals.

Khan, who is being grilled by ED sleuths after being arrested from Pune, said he was being framed.

?I am a victim of a political conspiracy. I am innocent,? Khan told reporters as he was taken inside the ED office here.

Khan, who reportedly evaded tax worth Rs 70,000 crore, was booked under the Prevention of Money Laundering Act after he was taken to Mumbai for questioning on black money and tax evasion.

Khan?s arrest has been followed by raids at premises of his associates in Mimbai, Pune, Gurgaon, Kolkata and other places since Monday evening.

The arrest had followed the Supreme Court?s strong words against the government, questioning its failure to crack the whip on black money hoarders.