Tax department detects tax irregularities in two groups

The searches conducted last week covered around 30 premises of each of the business groups. In the case of one of them–a real estate group engaged in the construction of residential and commercial projects in Mumbai and Navi Mumbai region of Maharashtra— tax officials detected ₹100 crore in cash receipt for sale of flats and default in tax deducted at source (TDS) obligation of ₹300 crore, the department said.

In the case of the other group engaged in dairy business in Pune, unaccounted income of ₹400 crore has been detected, the department said.

The real estate group allegedly used various methods of tax evasion and several documentary and digital evidences have been found showing receipt of cash to the tune of ₹100 crore, as part of consideration on sale of flats, which is not accounted for in the regular books of account, the department said.

The group used to issue promissory notes to customers equivalent to certain cash payments and these promissory notes were destroyed after registration of the flat.

Incriminating evidence regarding unaccounted cash payments made not only to the original tenants of the slums for vacating the dwelling unit but also to some other persons for facilitating vacation of the properties by slum dwellers has been found and seized. Initial analysis of evidence revealed that the group has acquired controlling stake in a company by paying consideration in cash.

In the case of the dairy group in Pune, several incriminating documents and evidence of tax evasion have been found, the department said. Initial analysis of these showed evasion of taxable income by way of claiming bogus purchases, unaccounted cash sales, cash loan transactions and their repayment, unexplained cash credits, etc.

The assessee group has not maintained proper and separate books of account for claiming specific deduction from its taxable income, the department said. The search action, so far, in this case has led to detection of unaccounted income of more than ₹400 crore, the department said.