This Article is From Feb 11, 2021

Over Rs 870 Crore Black Money Detected After Raids On Bengaluru Company

"This group has a huge land bank which is being developed into residential and commercial properties with a builder based in Bengaluru," CBDT said.

Advertisement
India News

The searches were carried out on February 9 at 26 locations across the country.

New Delhi:

The Income Tax Department has detected undisclosed income of over Rs 870 crore after it raided a "major" Bengaluru-based liquor manufacturing group, the Central Board of Direct Taxes (CBDT) said on Thursday.

The searches were carried out on February 9 at 26 locations across the country.

"In all, the search and seizure action has resulted in the detection of total undisclosed income of Rs 878.82 crore," a statement issued by the CBDT said.

"This group has a huge land bank which is being developed into residential and commercial properties with a builder based in Bengaluru," it said.

"The searches have resulted in detecting incriminating evidences relating to concealment of income of more than Rs 692.82 crore on account of joint development projects with a major builder based in Bengaluru," it said.

Advertisement

The group companies have "fraudulently" claimed expenses amounting to Rs 86 crore.

"In respect of their liquor business, unaccounted sales amounting to Rs 74 crore have been detected from one of their liquor manufacturing plants based in Kerala. The group companies have also claimed bogus expenses of Rs 17 crore in their business entities," it said.

Advertisement

The directors of the group have incurred unexplained expenditure of Rs 9 crore attracting the provisions of Section 69C (when expenditure is deemed to be the income of the assessee, no allowance of the same can be claimed as business expenditure) of the Income-tax Act, it claimed.

"There are large number of investments made in benami properties in the names of their employees and associates for several years," the statement said.

Advertisement

The CBDT said a total of 35 "suspected benami properties" in the names of the relatives of the promoters of the group and associates, valued at more than Rs 150 crore, have been identified.

There are also evidences of foreign assets in the name of a director of the group company, it added.

Advertisement

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Advertisement