Income Tax Dept raids various premises of business group in Delhi and Mumbai
Jul 15, 2022
New Delhi [India], July 15 : The Income Tax Department has raided various premises of a Delhi and Mumbai based business group engaged in hospitality, marble, lights trading and real estate businesses, the Union Finance Ministry said on Friday.
The department carried out a search and seizure operation on 7th July 2022. A total of 18 premises across Delhi, Mumbai and Daman were covered during the search action.
During the course of the search operation, a large number of incriminating evidences in the form of hard copy documents and digital data have been found and seized. This evidence indicates that the group has parked its undisclosed money abroad in certain low-tax jurisdictions, the finance ministry said in a statement.
The group, through a Malaysia-based web of companies, has finally invested the funds in its hospitality business in India. It is estimated that the quantum of such funds exceeds Rs 40 crore.
The evidence gathered indicates that the group has invested in a few companies abroad, which have been incorporated especially for commodity trading. The net worth of one such company including its profits earned has not been disclosed by the group in its ITRs for the relevant period.
Further, it has been detected that the promoter of the group has invested in immovable property in a foreign jurisdiction which has also not been disclosed in his Income tax return. Besides these, certain offshore entities, set up for commodity trading, have been identified, which have also not been declared.
The search action also revealed that the group was involved in out-of-books cash sales in its India operations. In its trading business of marble and lights, seized evidences indicate unaccounted cash sales to the extent of 50 to 70 per cent of the total sales. Undisclosed excess stock of Rs 30 crore has also been found.
In its hospitality business, unaccounted sales have been detected more specifically in banquet division.
So far, undeclared jewellery valued at Rs 2.5 crore has been seized. Further investigations are in progress, the ministry said.
