I-T dept uncovers tax evasion worth crores post raids on two firms

The Income Tax (I-T) Department has unearthed tax evasion worth crores of rupees after conducted multiple raids on a group operating in digital marketing and another company engaged in solid waste management, the Central Board of Direct Taxes (CBDT) said on Sunday. 

The I-T department carried out the searches on October 12 across many states. The first group operates in digital marketing and campaign management and the raids were conducted at seven premises situated at Chandigarh, Bengaluru, Mohali and SUrat, CBDT said in a statement.

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It further stated that incriminating evidence found shows that the group was involved in securing accommodation entries (bogus business entries) using an entry operator.

"The entry operator has admitted to have facilitated the transfer of cash and unaccounted income of the group through hawala operators," it alleged.

Inflation of expenditure and under-reporting of revenue has also been detected and the group has also been found to be indulging in unaccounted cash payments, the CBDT said.

The department found that personal expenses of the directors have been booked as business expenses in the books of accounts.

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"Luxurious vehicles used by the directors and their family members are found to have been purchased in the names of employees and entry provider," it claimed.

The second group searched is engaged in solid waste management and deals in solid waste collection, transportation, processing and disposal services across the country, primarily catering to Indian municipalities.

"Evidence found reveals that this group has indulged in booking of bogus bills for expenses and sub-contracts and a preliminary estimate of such bogus expenses booked is to the tune of Rs 70 crore," the statement said.

Unaccounted investment in property of about Rs 7 crore has been detected and unaccounted cash of Rs 1.95 crore and jewellery of Rs.65 lakh has been seized, it said.