Tag Archives: it raids

IT Department conducts searches on some prominent business groups in Maharashtra

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The Income Tax Department carried out a search & seizure action on 25.08.2022 on two groups engaged in the business of sand mining, sugar manufacturing, road construction, healthcare, running of medical college etc. The search action covered more than 20 premises spread over Solapur, Osmanabad, Nashik & Kolhapur districts of Maharashtra.

During the course of the search operation, a large number of incriminating evidences, in the form of hard copy documents and digital data have been found and seized. These evidences reveal various modus-operandi of tax evasion adopted by the group including booking of bogus expenses, undisclosed cash sales, unexplained loans/ credit entries, etc.

In case of the group engaged in sand mining and sugar manufacturing, documentary evidences of unaccounted cash sales of sugar exceeding Rs. 15 crore have been found & seized. The search action has revealed that the group has introduced its unaccounted income in the form of bogus unsecured loans in its books of accounts. Several lenders to the group, as well as promoters of the group have admitted that unaccounted cash generated by the group exceeding Rs. 10 crore was routed in its books of account in this manner.

Evidences of capital gains of about Rs. 43 crore on sale of assets by a non-filer corporate entity have also been seized.

In the other group engaged in the business of healthcare and running of medical college, as also road construction, evidences of undisclosed cash receipts representing capitation fee and refund of salary and stipend paid to the doctors/PG students have been found. Moreover, evidences regarding booking of bogus expenses and contractual payments etc. have been found & seized. Preliminary estimates of such undisclosed income of the group is to the tune of Rs. 35 crore.

Income-Tax

Income-Tax

So far, the search action has led to detection of unaccounted income of more than Rs. 100 crore.  Further, undisclosed assets of more than Rs. 5 crore have also been seized.

Further investigations are in progress.

Beware of cash payments at hospitals, you may come under Income-Tax radar

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The Income Tax department is scanning all the transactions at hospitals wherre the bills are paid in cash as it violates banking protocol and amounts to tax evasion.

The I-T sleuths have decided to monitor cash transactions at hospitals, banquet halls and businesses in a recent move to prevent tax evasion. As per the rule, any cash transaction above Rs. 20,000 in cash will be under scanner and lands you in trouble. Whether collecting hand loans or investment in cash is prohibited under the law and all such transactions should be routed via banks and accounted for.

To begin with, the department is currently scanning the hospitals and patients who have paid significant sums of money to private medical institutions. Hospitals or political parties and religious institutions cannot accept a total cash payment of Rs. 2 lakh or more from another person and they are not eligible for a tax deduction.


The department is also brining under its radar such professions or businesses where cash payments are made. In health care, PAN card details are to be duly recorded upon patient’s admission. Several health care facilities have periodically ignored this rule, the department officials told media sources.

Banquets, high-end market places and architects are under scanner currently for tax evasion, while others will soon be brough under the net based. Once concrete evidence is established, the I-T department is likely to send them notices. Most of these cash transactions are prevalent in small towns where the I-T departments’ limited presence is giving the idea that its tax net is not wide spread.

 

 

IT Raids Unearth Rs.2,600 Cr Since Nov. 8

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The Income Tax Department has carried out investigations since the de-monetisation of Old High Denomination (OHD) currency announced by the Government on 8th November, 2016 and unearthed  Rs.2,600 crore in 291 cases across the country. In addition, open enquiries have been effected in more than 3,000 cases.
Approximately Rs. 393 Crore including Rs. 316 Crore cash and Rs. 77 Crore worth of jewellery has been seized. Of the cash seizure, about Rs. 80 Crore is in new currency. As a result of these investigations, approximately Rs. 2600 Crore of undisclosed income has been admitted by the taxpayers.

The success of the Department in unearthing undisclosed incomes and detecting large scale malpractices is due to its focused enforcement actions based upon high quality data analytics under various categories thereby identifying and prioritizing high risk persons/groups.

This, coupled with the professional manner of conducting the investigations in a swift and confidential manner, has helped the Department make an impact in a short time.