Income Tax Department unearths multi-million dollar black money in raids on two business groups


The income tax department has uncovered tax evasion worth millions of rupees during search and seizure operations against two groups of companies in several states, the Central Commission for Taxation said on Sunday. direct taxes (CBDT) in a press release. The searches were carried out on October 12, the direct tax administration informed.

The first group is engaged in digital marketing and campaign management, while the second group is involved in solid waste management.

In the case associated with the first group of companies, the tax service conducted search operations at seven premises located in Bangalore, Surat, Chandigarh and Mohali.

Incriminating evidence found reveals that the group made a commitment to secure accommodation tickets using an entry operator, CBDT said. The entry operator admitted to facilitating the transfer of cash and unrecorded income from the group through the Hawala operators, he added.

Spending inflation and underreporting of revenue were also detected, the taxman said. The group also engaged in unrecorded cash payments.

“It is also noted that the personal expenses of the directors were recorded as professional expenses in the books of accounts. The luxury vehicles used by the directors and their family members were purchased on behalf of the employees and the service provider, ”said CBDT.

The second group provides solid waste collection, transport, treatment and disposal services, primarily to municipalities across the country. During the search of the company’s premises, various offending documents, loose papers and digital evidence were seized, CBDT said.

“The evidence found shows that this group engaged in booking false invoices for expenses and subcontracts. A preliminary estimate of these fictitious expenses recorded is of the order of ??70 crore, ”the tax administration said.

Real estate investments not recognized in the amount of approximately ??7 crore were discovered during the search action against the second group. Apart from this, ??1.95 crore in cash and jewelry not counted ??65 lakh were also seized.

Further investigations are underway in both groups, CBDT said.

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