I-T detects Rs 100 cr undisclosed income from 2 Maharashtra groups

The income-tax (I-T) department has detected undisclosed income of more than Rs 100 crore after it recently conducted searches on two ‘prominent’ Maharashtra-based business groups, the Central Board of Direct Taxes said in a statement on Friday.

The CBDT said the two businesses were engaged in sand mining, sugar manufacturing, road construction, health care, running of medical college, etc. “The search action covered more than 20 premises spread over Solapur, Osmanabad, Nashik, and Kolhapur districts of Maharashtra,” it said, but did not name the companies.

In the case of the group engaged in sand mining and sugar manufacturing, documentary evidences of “unaccounted” cash sales of sugar exceeding Rs 15 crore have been found and seized, the CBDT said. The group has introduced its unaccounted income in the form of bogus unsecured loans in its books of accounts, the statement said.

“Several lenders to the group, as well as promoters have admitted that unaccounted cash generated by the group exceeding Rs 10 crore was routed in its books of account in this manner.” "Evidences of capital gains of about Rs 43 crore on sale of assets by a non-filer corporate entity have also been seized,” the CBDT said.

Seized documents and digital data showed the modus operandi of tax evasion adopted by the group, including booking of bogus expenses, undisclosed cash sales, unexplained loans/credit entries, the statement said.

In the case of the group engaged in the business of health care and running of medical college, as also road construction, evidences of undisclosed cash receipts representing capitation fee and refund of salary and stipend paid to the doctors and post graduate students had been found.

“Instances related to booking of bogus expenses and contractual payments have been found and preliminary estimates of such undisclosed income of the group is to the tune of Rs 35 crore,” it said.

CBDT said that so far, the search action on both groups has led to detection of unaccounted income of more than Rs 100 crore, and undisclosed assets of more than Rs 5 crore have been seized.