The Income Tax Department alleged a tax evasion worth millions of rupees after raiding two Indore-based companies active in mining, media and cable television services, and the other running a coaching group, over a week ago, the CBDT said on Friday.
The searches were carried out in more than 70 premises in six states, including Madhya Pradesh, against the two unidentified groups on November 25.
Incriminating documentary and digital evidence including a parallel set of financial records from some of the companies were seized.
“A preliminary analysis of this evidence shows an evasion of taxable income by adopting various embezzlements, in particular the suppression of sales in mining activities,” the Central Commission of Direct Taxes (CBDT) said in a statement.
Similar large-scale tax evasion has been seen in the operations of the cable TV service, he said.
The statement claimed that evidence of “other wrongdoing such as paying money in cash (cash), suspected benami transactions, unrecorded expenses incurred in cash, undisclosed investments in real estate, among others, were also found “. He said the group also accepted hosting entries in the form of bogus unsecured loans exceeding Rs 40 crore from various front companies run by entry operators. The main entry operator, the key manager and several fictitious directors of the front companies were identified, located and covered during the search operation. The dummy directors and the key manager admitted that the companies are just paper entities and they work at the behest of the main entry operator, ” he said. In addition, according to the statement, documents seized from the group of coaches “clearly show the suppression of student cash inflows that exceed Rs 25 crore.” Analysis of the evidence seized also indicates that this group systematically suppresses its royalty and profit-sharing revenues from its various franchisees.
“Unaccounted for cash in excess of Rs 10 crore has been received in such accounts,” he said.
Money worth Rs 2 crore was seized during the raids against the two groups, he added. PTI NES SRY
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