Income Tax Department searches 18 locations in Delhi, Mumbai
The Income Tax Department said on Friday it carried out a search and seizure operation on July 7 on a Delhi and Mumbai-based group engaged in hospitality, marble, light trading and real estate.
The official said a total of 18 premises in Delhi, Mumbai and Daman were covered during the search action.
“During the search operation, a large amount of incriminating evidence in the form of paper documents and digital data was found and seized. This evidence indicates that the group placed its undisclosed money overseas in certain low-tax jurisdictions. The group, through a network of companies based in Malaysia, eventually invested the funds in its hotel business in India. The amount of these funds is estimated to exceed Rs 40 crore,” said said the manager.
The official added that the evidence gathered indicates that the group has invested in a few overseas companies, which were set up specifically to trade in commodities. The net worth of one such company, including its realized profits, was not disclosed by the group in its IPRs for the relevant period.
Additionally, the group’s promoter was discovered to have invested in real estate in a foreign jurisdiction which was not disclosed in his tax return.
Besides these, some offshore entities, created for the trading of commodities, have been identified, which have also not been declared.
The search action also revealed that the group was involved in off-book cash sales in its India operations.
In his marble and lighting business, evidence seized indicates unrecorded cash sales amounting to 50-70% of total sales. An undisclosed excess stock of Rs 30 crore was also found.
In its hotel business, unrecognized sales were detected more specifically in the banquet division. So far, undeclared jewelry worth Rs 2.5 crore has been seized.
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