The Income Tax Department on February 6 carried out a search and seizure action which led to the detection of an unaccounted income of more than Rs 2,000 crores. The search and seizure action covered more than 40 premises residing in Hyderabad, Vijaywada, Cuddapah, Vishakhapatnam, Delhi, and Pune. A press release by the Ministry of Finances stated that three prominent infrastructure groups based in Andhra Pradesh and Telangana were also included.
The search operations revealed that infrastructure companies had sub-contracted work to several non-existent entities and siphoning off more than Rs 20,000 crores through transactions that were layered through multiple entities. The entities were either not found at their registered address or were found to be shell entities. The press release stated that FDI receipts of several crores in the group companies of one of the infrastructure companies are expected to be round-tripping of its unaccounted funds. Furthermore, unexplained cash of Rs 85 lakhs and jewellery worth Rs 71 lakhs were also seized and more than 25 bank lockers have been restrained.
The Income Tax (I-T) Department on January 19, seized unaccounted assets worth Rs 24.93 crore during a search operation conducted in 13 premises of a leading hospitality industry group in the National Capital Region (NCR). The Income Tax Department conducted searches on January 19, on a group that has been on their radar for having substantial undisclosed foreign assets. The operation covered 13 premises in NCR," the Central Board of Direct Taxes (CBDT) said in a press release on Friday.
CBDT revealed that the group is a leading member of the hospitality industry which is running a chain of luxury hotels under a prominent brand name at various locations in India and abroad. On the basis of evidence gathered during the search, CBDT claims that the group has stored a large amount of black money abroad through the Trusts formed in the early 1990s in tax havens.
Image Credits: PTI