Income Tax Department conducts searches in 18 places in Delhi, Mumbai

The official said that a total of 18 premises across Delhi, Mumbai and Daman were covered during the search action

income tax
income tax
IANS New Delhi
2 min read Last Updated : Jul 16 2022 | 7:56 AM IST

The Income Tax Department on Friday said it had carried out a search and seizure operation on July 7 on a Delhi and Mumbai based group, engaged in the business of hospitality, marble, lights trading and real estate.

The official said that 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 evidence in the form of hard copy documents and digital data have been found and seized. These evidence indicate that the group has parked its undisclosed money abroad in certain low tax jurisdictions. The group, through Malaysia based web of companies, has finally invested the funds in its hospitality business in India. It is estimated that quantum of such funds exceeds Rs 40 crore," the official said.

The official further said that evidence gathered indicates that the group has invested in a few companies abroad, which were incorporated specially for commodity trading. The net worth of one such company including its profits earned were not disclosed by the group in its ITRs for the relevant period.

Further, it was detected that the promoter of the group had invested in an immovable property in foreign jurisdiction which was not 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 evidence 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.

--IANS

atk/pgh

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Income Tax raidI-T DepartmentDelhiMumbai

First Published: Jul 16 2022 | 7:56 AM IST

Next Story