Tag: Tax Raid

Income Tax department conducts big raid on footwear giant, footwear shares shaken due to tax raid

Red Robin Shares React to Income Tax Department Searches

Shares of Red Robin, the popular footwear and clothing maker, on Tuesday, September 16, informed the stock exchanges that the Income Tax Department conducted search operations at some of its offices between September 11 and September 16, 2025.

Income Tax Raid on RedTape

In a filing to the exchange, the company stated that it has fully cooperated with the tax authorities throughout the search, submitting all required clarifications and documents. RedTape also assured stakeholders that its business activities remain unaffected and continue as normal.

We will continue to provide additional information or clarifications as required and fulfill our disclosure obligations under the law, from time to time,” the company emphasized in the filing.

RedTape Splits from Mirza International

RedTape went public on the stock exchanges in August 2023 following its separation from Mirza International, a move that had been in the works since November 2021. At the time of the demerger announcement, RedTape represented nearly 55% of Mirza International’s total sales, highlighting the brand’s significant contribution to its parent company’s revenues. This split was officially approved by the National Company Law Tribunal (NCLT) in February 2023. Despite the separation, the Mirza family retains a 71.80% stake in RedTape Ltd as the promoter.

RedTape Stock Performance

In light of the tax-related developments, the market reaction has been somewhat subdued. On Monday, RedTape shares closed 1.06 percent lower at Rs 137.24. However, the stock has seen positive momentum over the past few weeks, gaining 10 percent in the last month.

About RedTape

RedTape has established itself as a leading global footwear and clothing brand for men, women, and kids, offering world-class quality and international style in footwear, apparel, and accessories. With a presence in 17 countries across six continents, including India, the UK, the USA, and Australia, the brand continues to expand its reach.

500 crore tax scam in Pune! Income Tax Department raids, black money hunters in the field

Income Tax Department Uncovers Massive Fraud Scheme Involving Tax Professionals

The Directorate of Income Tax (Investigations) has uncovered an elaborate nexus of fraudulent income tax returns, revealing that certain tax professionals exploited loopholes within the previous system to facilitate deductions based on unverified claims. This fraud, estimated to exceed Rs 500 crores, has raised significant concerns within the Income Tax department.

According to a senior officer in the Income Tax department, tax professionals operating in Pune and its surrounding regions presented themselves as “return specialists.” They offered their services to salaried individuals, promising unusually high returns on their income tax filings. Over a span of five years, these professionals filed more than 10,000 dubious claims.

Investigators have identified a consistent pattern in the returns submitted—deductions were claimed for items like housing loan interest and principal repayments, medical expenses, insurance payments, investments in savings instruments, educational loans, and house rent allowance (HRA), all without any supporting documentation. This critical error has since been rectified in the current system of filing returns.

The ongoing scrutiny of the filed returns indicates persistent issues, as claims for deductions were frequently made in violation of tax laws. We have already initiated action against the tax professionals involved and are now focusing on identifying individual taxpayers who benefited from these bogus returns, as they will now face penalties and possible prosecution,” the officer stated.

The officer further emphasized that taxpayers would not be able to escape responsibility by blaming their intermediaries. Any refunds claimed in their names will be subject to thorough reviews, and penalties will be enforced where applicable. This case is not isolated; it falls within a broader trend of fraudulent deductions being unearthed across various regions of the country. Previous investigations have revealed manipulations involving PAN numbers, TDS credits, and the creation of bogus trusts for deduction claims. However, officials involved in the Pune case have confirmed it to be the most significant fraud case encountered in recent years.

New Income Tax Bill: Taxpayers’ Social Media Under Scrutiny During Raids

New Income Tax Bill: Digital Access Regulations

Under the new Income Tax Bill, tax officials will be granted access to digital spaces or computer equipment solely during raid operations. A top official from the Income Tax Department provided this information, emphasizing that the intention behind this provision is to protect the online privacy of ordinary taxpayers.

The official reiterated that even if a taxpayer’s case is under investigation, their privacy will still be upheld. They clarified that these powers were “already present in the income Tax Act of 1961 and are simply being relterated in the Income Tax Bill of 2025.

Rejecting claims made by certain media reports and experts that tax officials have been endowed with additional powers to access electronic records, including emails, social media accounts, and cloud storage of taxpayers, the official stated, “Such reports are nothing but spreading fear. The tax department does not spy on the taxpayer’s social media account or online activities.

Furthermore, the official informed PTI-Bhasha that these powers should only be employed during search or raid operations. It was specified that access would also be sought during raids if the taxpayer refuses to share passwords for their digital storage drives, email accounts, and communication platforms, including WhatsApp and Telegram.

The Income Tax Bill, 2025, is currently under consideration by Parliament.