While a statement issued by the Central Council of Direct Taxes (CBDT), the governing body of the tax department, did not name any entity, sources said they were linked to the Samajwadi MLC Pushpraj party aka Pampi Jain. and another perfumer Fauzan Malik. Searches were carried out on December 31 in more than 40 premises in Maharashtra, Delhi, Tamil Nadu, Gujarat and in certain places in Uttar Pradesh, in particular in Kannauj where Jain resides.
CBDT said it was discovered that the group was “involved in tax evasion by underreporting sales of perfumes, handling inventory, falsifying account books to shift profits from the taxable unit to tax-exempt unit, expenditure inflation, etc. ”
“Evidence found in the sales office and the main office revealed that the group makes 35-40% of its retail sales in cash through ‘kucha’ invoices and that these receipts are not recorded in the regular account books. , reaching millions of rupees, “he said.
Analysis of the ‘incriminating’ evidence indicates that the ‘unrecognized’ income thus generated is invested in various real estate projects in Mumbai, acquiring properties in both India and the United Arab Emirates (UAE), a- he declared. CBDT claimed that the group’s promoters had incorporated some offshore entities that had not been reported in their tax returns.