• Notification Date: 18-11-2021
• Notification No: 40/2011-22

Income Tax Dept raids on Pune based Company unearths ₹200 crores black money

Income Tax Department has discovered black money amounting to ₹200 crore while raiding against a Pune-based business group. The search and seizure operations were carried out at 25 locations across 7 cities on November 11, the Central Board of Direct Taxes (CBDT) said in a statement on Tuesday.

The company is involved in manufacturing of heavy machinery like excavators, cranes, concrete machinery etc., which are used in mining, piling and port, etc.

During the course of the search, several incriminating documents and materials in the form of electronic data have been discovered and seized, the direct tax authority said.

Analysis of the seized evidence shows that the business group has been suppressing its profit by adopting various malpractices, such as fraudulently lowering sales through credit notes, bogus claim of expenses through unsubstantiated trade payables, non-genuine claim of expenses on unused free-of-charge services, non-verifiable commission expenses to related parties, wrongful deferment of revenue and incorrect claims of depreciation, etc.

"In the case of related entities, evidence of cash receipts by dealers/brokers, unaccounted investment in properties and unaccounted cash loans have also been found and seized", CBDT said.

Unaccounted cash and jewellery worth ₹1 crore have been seized during the income tax raids. Meanwhile, three bank lockers found during the search have also been placed under restraining order.

“The search action has led to the detection of total unaccounted income exceeding ₹200 crore. Out of the above, the assessee group has, so far, admitted to unaccounted income of ₹120 crore," CBDT said.