Income tax raids on 18 locations of business group in Delhi-Mumbai, jewelery worth crores seized, black money exposed abroad

The Union Finance Ministry on Friday said the Income Tax Department has conducted raids at various locations of a business group based in Delhi and Mumbai engaged in hospitality, marble, lights trading and real estate businesses. The Income Tax Department had conducted a search and seizure operation on 7 July 2022. A total of 18 premises in Delhi, Mumbai and Daman were covered during the raids.

During the search operation, a large number of incriminating evidence in the form of hard copy documents and digital data were found and seized. The finance ministry said in a statement that this evidence indicates that the group has kept its undisclosed money overseas in somewhat less taxing jurisdictions.

The group has finally invested funds in its hospitality business in India through a web of Malaysia-based companies. It is estimated that the quantum of such fund is more than Rs 40 crore.

The collected evidence indicates that the group has invested in certain companies overseas, which have been incorporated exclusively for commodity trading. The total assets of such a company including its earned profits have not been disclosed by the group in its ITR for the relevant period.

Further, it is learned that the promoter of the group has invested in immovable property in a foreign jurisdiction, which has also not been disclosed in his income tax return. In addition to these, some offshore entities established for commodity trading have been identified, which have not been declared.

The search also revealed that the group was involved in out-of-book cash sales in its Indian operations. In its marble and lights trading business, confiscated evidence indicates unaccounted cash sales of 50 to 70 percent of total sales. Undisclosed additional stock of Rs 30 crore has also been found.

 The ministry said that unaccounted sales have been detected in its hospitality business, especially in the Banquet division. So far, undeclared jewelery worth Rs 2.5 crore has been seized. Further investigation is on.

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