New Delhi: The Income Tax Department has conducted searches at the premises of two business groups engaged in perfume manufacturing and immovable property, which have revealed tax evasion, non-foreign investment and other irregularities, the tax department said in a statement on Wednesday.
The search operation conducted last Friday covered over 40 premises in Uttar Pradesh, Maharashtra, Delhi, Tamil Nadu and Gujarat, the statement said.
The searches revealed that one of the groups, primarily based in Mumbai and UP, alleged taxation by selling perfumes, stock manipulation, rigging the books of account to transfer profits from a taxable entity to a tax exempt entity, and inflating expenditure. has been involved in theft.
Evidence found at the sales office and head office showed that the group makes 35% to 40% of its retail sales in cash using informal invoices and that cash receipts have not been recorded in the regular books of account, amounting to crores of rupees. is underway, the statement said. About Rs. 5 crore has also been detected.
Evidence suggests that the unaccounted income has been invested in real estate projects in Mumbai and purchase of properties in India and the United Arab Emirates (UAE), the statement said. It is also learned that the group has allegedly committed tax evasion of Rs. 10 crore income has not been declared on conversion of stock-in-trade into capital. The department has taken evidence that the promoters of the group have included some offshore entities which have not been reported in their income tax returns.
In search of another group based in UP, about Rs. 10 crore, the statement said. It is also collected that the group does not maintain any stock register for its inventory. Unaccounted cash and unexplained jewelery have been confiscated and several bank lockers have been impounded and are yet to be operated, the statement from the tax department said. (End)
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