IT department detects 100 crore tax evasion by Gujarat company


New Delhi: The Income Tax Department has detected suspected tax evasion by a Gujarat group engaged in chemicals production and property development, the department said in a statement on Sunday.

The discovery was made during searches carried out last week at 20 premises spread across Vapi and Sarigam in Gujarat, Silvassa and Mumbai, the statement said. “Preliminary analysis of documents and evidence uncovered during the research indicated that the estimate of unrecorded income is likely to be over Rs 100 crore,” the statement said.

The department said prosecution evidence in the form of documents, journal notes and digital data showing unrecorded income by the group and its investment in assets had been found and seized. The search resulted in the seizure of unrecorded cash of approximately ??2,5 crore and jewels ??1 crore. In addition, 16 bank records were placed in receivership.

Evidence points to evasion of taxable income by cutting production, using false purchase invoices without actual delivery of goods to inflate purchases, using a fictitious GST credit and claiming expenses fictitious commission. All of this resulted in the generation of unrecorded cash, the department said. Further investigation is underway.

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