(FE)
Petrol pumps, which were allowed to accept old currency notes in payments towards refueling of vehicles after demonetisation, are under the scanner of the income tax department for suspected conversion of unaccounted cash, BTVi reported citing unidentified sources.The income tax department is reportedly investigating whether some deposits camouflaged as payments from bogus debtors, allowing tax evaders to convert their undeclared cash money at the petrol pumps.
Prime Minister Narendra Modi, in a surprise move on November 8, demonetised high-value currency notes in order to curb the menace of black money, sucking out 86% of cash currency in circulation in the country. The total value of the demonetised Rs-1000 and Rs-500 notes was at Rs 14.6 lakh crore.Huge cash deposits in banks followed, as people queued up to trade in their old worthless notes with the new ones being issued by the government, leaving a trail in many cases for tax authorities to investigate suspicious inflows.
