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Income Tax Department unearths black money worth crores in raids against two business groups

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Income Tax Department has unearthed tax evasions amounting to crores of rupees in search and seizure operations against two business groups across several states, the Central Board of Direct Taxes (CBDT) said in a statement on Sunday. The raids were conducted on October 12, informed the direct tax authority.

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

In case associated with the first business group, the tax department conducted carried out search operations at seven premises located in Bengaluru, Surat, Chandigarh, and Mohali.

Incriminating evidence found reveals that the group has been engaged in obtaining accommodation entries using an entry operator, CBDT said. The entry operator has admitted to have facilitated transfer of cash and unaccounted income of the group through Hawala operators, it further added.

Inflation of expenditure and under-reporting of revenue has also been detected, the taxman said. The group also indulged in unaccounted cash payments.

“It is also found that personal expenses of the directors have been booked as business expenses in the books of accounts. Luxurious vehicles used by the directors and their family members are found to have been purchased in the names of employees and entry provider,” CBDT said.

The second group provides solid waste collection, transportation, processing and disposal services, primarily to municipalities across the country. During the search at company premises, various incriminating documents, loose papers and digital evidences have been seized, CBDT said.

“Evidence found reveals that this group has indulged in booking of bogus bills for expenses and sub-contracts. A preliminary estimate of such bogus expenses booked is to the tune of 70 crore,” the tax authority said.

Unaccounted investment in property to the tune of about 7 crore was discovered during the search action against the second group. Apart from this, 1.95 crore in unaccounted cash and jewellery worth 65 lakh was also seized.

Further investigations are in progress in both the groups, CBDT mentioned.

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