Image Source : PTI/REPRESENTATIONAL IMAGE I-T dept after raids Mumbai-based gutka group, detects Rs 1,500-cr undisclosed transactions
The Income Tax Department has detected unaccounted transactions of about Rs 1,500 crore and belongings in a tax-haven nation after raiding a Mumbai-based group concerned in hospitality enterprise and manufacturing of gutka and pan masala, the CBDT stated on Monday. The official assertion issued by the Central Board of Direct Taxes (CBDT) didn’t establish the group. However, official sources within the tax division recognized it because the JMJ group promoted by businessman J M Joshi.
The growth got here a day after J M Joshi’s actor-businessman son Sachin Joshi was arrested by the Enforcement Directorate (ED) in a cash laundering case linked to a Mumbai-based realty group.
Sachin Joshi was despatched to ED custody until February 18 after he was produced earlier than a Mumbai court docket that hears circumstances filed below the Prevention of Money Laundering Act.
The CBDT, that frames coverage for the tax division, stated the six-day lengthy search and survey operation in opposition to the group in a number of cities ended on February 13.
“The search action has led to detection of unaccounted transactions of around Rs 1,500 crore, so far,” the CBDT stated, including Rs 13 lakh money discovered in the course of the raids has been seized and jewelry value Rs 7 crore recovered “put under prohibitory orders.”
“The search and seizure action has led to detection of foreign assets lying with a company registered in tax-haven British Virgin Islands with an office in Dubai and controlled and managed by the chairman of the group.”
The internet value of the British Virgin Islands firm is Rs 830 crore created by siphoning of funds from India, the CBDT alleged within the assertion.
This fund, it claimed, has been spherical tripped to India within the type of share premium amounting to Rs 638 crore within the flagship corporations of the group. The CBDT stated “various digital evidences and forensic analysis have yielded email communication, establishing control and management of the company with the promoter of the group searched.”
“One of the employees, who was also a shareholder in the British Virgin Islands company, was identified and cross-examined with the promoter.”
“It has been accepted by the parties involved that the employee was not aware about being a shareholder in the company and he had signed papers on the instruction of the main promoter,” it claimed.
It has been discovered that the group has availed “bogus” deduction below part 80IC (deduction out there within the case of recent industrial endeavor) of the Income Tax Act to an extent of Rs 398 crore. “The group set up two entities in Himachal Pradesh and was found to indulge in sham transactions in order to claim the aforesaid false deduction.”
It alleged that “unaccounted production of pan masala worth of Rs 247 crore at two factory premises of the group has also been detected.”
“It has also been seen that the assessee has falsely claimed deduction u/s 10AA (tax holiday for SEZs) of the Income-tax Act of an amount of Rs 63 crore in the Gandhidham (Gujarat) unit,” the assertion stated.
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