The group companies and subsidiaries have admitted to having unaccounted income of Rs 300 crore. Apart from this, the group has also agreed to pay the outstanding tax.
Trying to hide capital gains.
After raiding the premises of a Hyderabad-based company engaged in real estate and waste management, the Income Tax Department detected unaccounted income of Rs 300 crore. The Central Board of Direct Taxes (CBDT) gave this information on Friday. The search was done on July 6. The CBDT said in a statement, “Based on the search and seizure operation and receipt of various documents, the group companies and affiliated companies have admitted to have unaccounted income of Rs 300 crore. Apart from this, the group has also agreed to pay the outstanding taxes.
CBDT prepares policy for the tax department. The board did not reveal the identity of the group, but said it is engaged in real estate, construction, waste management and infrastructure activities. The CBDT said the group’s waste management business is spread across India, while the real estate activities are mainly concentrated in Hyderabad. On the alleged tax evasion by the group, the CBDT said, “It was found that the group had sold its maximum stake, during the financial year 2018-19, to a Singapore based non-resident unit of the group and a large amount of capital Gain was taken advantage of.
Profit transferred with the help of bonus
“The group subsequently transferred that profit through lucrative schemes such as share purchase, sale, ‘Non Arm Length Valued Subscription’ and subsequent issuance of bonus with related parties,” the statement said. He did this to show the earnings earned by way of capital gains as loss.
Capital gain concealed by showing loss intentionally
The CBDT said, “The incriminating evidence, documents that have been recovered prove that artificial loss was shown to set off the respective capital gains. The search operation has revealed artificial loss of about Rs 1200 crore, on which tax liability arises. Its quantity and modalities are being investigated.
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