Income Tax Department raids in Hyderabad, unaccounted income of 300 crores unearthed

New Delhi: Income Tax Department launched a search and seizure operation on 6 July 2021 on a group based in Hyderabad. The group operates in the real estate, construction, waste management and infrastructure sectors. The group’s waste management business is spread across India. Whereas real estate activities are mainly concentrated in Hyderabad.

During the search and seizure operation, many incriminating documents, many loose sheets, etc. were confiscated. Which proves the group’s involvement in unaccounted transactions. It was found that the group had sold its maximum stake to a Singapore-based non-resident unit of the group during the financial year 2018-19 and availed a huge amount of capital gains. The group later transferred that profit through lucrative schemes such as share purchase/sale/non-arm length valued subscription with related parties and subsequent bonus issuance. He did this to show the earnings earned through capital gains as a loss. The incriminating evidence/documents that have been recovered prove that artificial loss was shown to set off the respective capital gains. An artificial loss of about Rs 1200 crore has been detected in the search operation. on which the tax liability arises.

Apart from this, during the search, it was also found that the group wrongly claimed bad loans of Rs 288 crore. For this, the profit earned through related party transactions was concealed. Incriminating documents related to this artificial/false claim have also been found during the search. The search operation has also unearthed unaccounted cash transactions with associates of the group and its quantum and modalities are under investigation.

Based on search and seizure operations and receipt of various incriminating documents, the group companies and their associates have admitted to having an unaccounted income of Rs 300 crore. In addition, the group has also agreed to pay the outstanding taxes.

Further investigation in this regard is on.

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