IT dept detects tax evasion worth crores after raids on two business entities

The Income Tax Department has detected tax evasion worth crores of rupees after it raided a group engaged in digital marketing and another entity engaged in solid waste management, the CBDT said on Sunday. The searches were carried out on October 12 in a number of states.

The first group is engaged in digital marketing and campaign management and the raids were carried out at seven premises located in Bengaluru, Surat, Chandigarh and Mohali, the Central Board of Direct Taxes (CBDT) said in a statement.

"Incriminating evidence found reveals that the group has been engaged in obtaining accommodation entries (bogus business entries) using an entry operator. The entry operator has admitted to have facilitated 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.

"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.