The Income Tax Department recently conducted searches on two groups engaged in digital marketing and waste management in several states, the Central Board of Direct Taxes (CBDT) said today.
According to an official release, the I-T department initiated search and seizure operations in two groups, engaged in the business of digital marketing and waste management, based in several states on October 12.
"The first group is engaged in digital marketing and campaign management wherein the search operations have been carried out at seven premises located in Bengaluru, Surat, Chandigarh, and Mohali," the release said.
According to CBDT, incriminating evidence found reveals that the group has been engaged in obtaining accommodation entries using an entry operator. The entry operator has admitted to having facilitated the transfer of cash and unaccounted income of the group through Hawala operators, it said.
"Inflation of expenditure and under-reporting of revenue has also been detected. The group has also been found to be indulging in unaccounted cash payments. It is also found that the personal expenses of the directors have been booked as business expenses in the books of accounts. Luxurious vehicles used by the directors and their family members are found to have been purchased in the names of employees and entry providers," said the CBDT statement.
As per the release, the second group searched is engaged in solid waste management comprising solid waste collection, transportation, processing and disposal services across the country, primarily catering to municipalities.
"During the course of the search, various incriminating documents, loose papers and digital evidences have been seized. Evidence found reveals that this group has indulged in the booking of bogus bills for expenses and sub-contracts. A preliminary estimate of such bogus expenses booked is to the tune of Rs 70 crore," said CBDT.
The search has led to the detection of unaccounted investment in property of about Rs 7 crore. It has resulted in the seizure of unaccounted cash worth Rs 1.95 crore and jewellery worth Rs 65 lakh.
Further investigation is in progress in both groups.
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