Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 29th December, 2021

PRESS RELEASE

Income Tax Department conducts searches in Chhattisgarh

The Income Tax Department carried out search and seizure operations on 22.12.2021 on two prominent groups of Raipur and Korba, engaged in the business of manufacturing of iron & steel products, coal washery and transportation, etc. The search action covered more than 35 premises spread over Raipur, Korba, Bilaspur and Raigarh districts of Chhattisgarh.

During the course of the search action, in one of the groups, various incriminating documents and digital evidences have been found and seized including a parallel set of cash books. The preliminary analysis of these parallel set of cash books reveals that it contains a systematic record of unaccounted transactions of more than Rs. 200 crore. Evidences collected also suggest that certain entities of this group have been found to be indulging in suppression of actual production and subsequent unaccounted sales made in cash, which are not recorded in the regular books of account. In the case of one such entity, parallel set of books of account evidencing transactions of about Rs.50 crore, which are not reflected in the regular books of account, have been found and seized. The search team has also found that this group is evading their taxable income by obtaining bogus purchase invoices from related group entities engaged in transportation as well as from entry providers. 

The analysis of incriminating documents and other related evidences in the case of another group clearly indicates that this group has indulged in various malpractices to evade taxes on its income by resorting to obtaining of share capital with unsubstantiated share premium and claim of expenses on bogus purchases. The key person of this group has admitted an undisclosed income of Rs.20 crore.

So far, the search action has led to the seizure of unexplained cash and jewellery of more than Rs. 3 crore.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 28th December, 2021

PRESS RELEASE

Income Tax Department conducts searchesin Rajasthan

The Income Tax Department carried out search and seizure operationson 22.12.2021 on two groups and their business entities. One group is engaged in the business of manufacturing electrical switches, wires, LEDs, real estate and hotel business in Rajasthan, Maharashtra and Uttarakhand whereas, the other group is engaged in money lending business in Jaipur and nearby cities. The search action has covered more than 50 premises spread over various locations including Jaipur, Mumbai, and Haridwar.

A large number of incriminating documents and digital data have been found and seized during the search action.

A preliminary analysis of seized evidence reveals that several entities, engaged in the business of manufacturing switches, wires, LEDs, etc., have been selling such goods which are not recorded in the regular books of account. During the investigation, it was also noticed that they were claiming bogus expenses to reduce taxable income. The trail of receipt of cash component on unaccounted sale of goods has also been found. In the case of this group, the search team has detected transactions evidencing undisclosed income of more than Rs.150 crore. The key person of the group has admitted Rs.55 crore as undisclosed income and has offered to pay tax thereon.

The analysis of seized and other related documents relating to the other group has revealed that most of the loans are given in cash and a relatively high rate of interest has been charged on these loans. Neither the loans advanced nor the interest income earned thereon, have been disclosed in the returns of income of the persons engaged in this business. Evidence relating to undisclosed income of more than Rs.150 crore has been detected in this group.

The search action, so far, has resulted in total seizure of unaccounted cash and jewellery worth Rs.17 crore.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 28th December, 2021

PRESS RELEASE

Income Tax Department conducts searchesin Maharashtra

The Income Tax Department carried out search and seizure operationson 22.12.2021on two business groups of Nandurbar and Dhule districts of Maharashtra. These groups are engaged in the business of civil construction and land development. The search operation covered more than 25 premises spread across Nanndurbar, Dhule and Nashik. 

During the search and seizure operation many incriminating documents, loose papers, and digital evidences have been found and seized.

In the case of entities belonging to the first group, the seized documents clearly reveal that they have resorted to large-scale suppression of taxable income by inflating their expenses, primarily by way of the claim of non-genuine sub-contract expenses and unverifiable old sundry creditors. The search team has detected that these subcontracts have been awarded to family members and their employees who have not rendered services in this regard. Evidence has also been gathered about unrecorded expenses incurred in cash. The preliminary investigation indicates that this group has evaded income to the extent of Rs. 150 crore on account of the above malpractices.

In the case of the land developers, it has been found that a substantial part of the land transactions have been carried out in cash which are not accounted for in the regular books of account. Further, incriminating documents evidencing receipt of ‘on-money’ on land transactions and cash loans exceeding Rs. 52 crore have been found and seized. 

The search action has, so far, resulted in the seizure of unaccounted cash of more than Rs. 5 crore and jewellery valued at Rs.5 crore. 

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 21st December, 2021

PRESS RELEASE

Income Tax Department conducts searchesin Uttar Pradesh and Karnataka

The Income Tax Department carried out search and seizure operationon 18.12.2021on various persons and their business entities, engaged in the business of civil construction and real estate and running educational institutes in UP and Karnataka. A Kolkata based entry operator has also been covered in the search operation.

The search action covered more than 30 premises spread over various locations including Lucknow, Mainpuri, Mau, Kolkata, Bengaluru and NCR. Large number of incriminating evidences including hard copy documents and digital data have been found and seized during the search. Preliminary analysis of the same has revealed the following modus-operandi of tax evasion:

1. It was found that several entities, engaged in the business of civil construction, were involved in claiming of bogus expenditure running into crores of rupees. Various incriminating documents including blank bill books, stamps, signed cheque books of bogus suppliers have been found and seized. In case of one company, undisclosed income of over Rs. 86 crore of the directors of the company has been detected. Out of it, the person concerned has admitted a sum of Rs. 68 crore as his undisclosed income and offered to pay tax thereon. In the case of a proprietary concern, books of accounts relating to its turnover exceeding Rs. 150 crore during the last few years could not be produced. In another concern, it was detected that it used the conduit of shell companies to route its unexplained income and investments.Such unexplained investment to the tune of Rs. 12 crore has been identified. In case of another person, unexplained investment of Rs. 11 crore in a shell company and investments in benami properties worth Rs. 3.5 crore have been identified.
2. Further, a Kolkata based accommodation entry provider was also covered in connection with providing accommodation entries to these persons. It was found that the entry operator formed various shell companies to provide accommodation entries of bogus share capital to the tune of Rs. 408 crore and bogus unsecured loan of Rs. 154 crore through these shell companies. Substantial amount of digital data evidencing hawala transactions has also been found & seized during the search operation. The entry operator has admitted to the above modus-operandi, and also disclosed unaccounted commission income of Rs. 5 crore.
3. In respect of a Bengaluru based Trust and its related entities covered in the search action, it is revealed that substantial amounts of trust funds amounting to Rs. 80 lakh have been transferred, in the guise of donation, for non-trust purposes, to certain Kerala based entities including Markazu Saquafathi Ssunniyya Trust and Markaz Knowledge City Trust, connected with Gulf countries, for the personal benefit of the trustees. This, prima-facie indicates violation of relevant provisions relating to registration of trusts under the Income-tax Act, 1961 for claim of exemption, as well as, FEMA provisions. Evidences with regard to collection of capitation fee of about Rs. 10 crore in cash, and expenses to the tune of over Rs. 4.8 crore incurred from the account of the Trust, for the trustees’ personal benefit, over the last 3 years, have also been gathered.

The search action has resulted in seizure of unaccounted cash of Rs.1.12 crore.

Further investigations are in progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 17th December, 2021

PRESS RELEASE

Advance Tax collections for the F.Y. 2021-22 (Till 3rd Installment) stand at Rs. 4,59,917.10 crore as on 16.12.2021 which shows a growth of approximately 53.50%

Net Direct Tax collections for the F.Y. 2021-22 have grown at a robust pace at more than 60%

Refunds aggregating to Rs. 1,35,093.6 crore have been issued in the current fiscal

The figures of Direct Tax collections for the Financial Year 2021-22, as on 16.12.2021 show that net collections are at Rs. 9,45,276.6 crore compared to Rs. 5,87,702.9 crore over the corresponding period of the preceding financial year i.e FY 2020-21, representing an increase of 60.8%. The net collection (as on 16.12.2021) in FY 2021-22 has registered a growth of 40% over the corresponding period of FY 2019-20 when the net collection was Rs. 6,75,409.5 crore, and a growth of 40.93% over the corresponding period of FY 2018-19 when the net collection was Rs. 6,70,739.1 crore.

The Net Direct Tax collection of Rs. 9,45,276.6 crore (as on 16.12.2021) include Corporation Tax (CIT) at Rs. 5,15,870.5 crore (net of refund) and Personal Income Tax (PIT) including Security Transaction Tax (STT) at Rs. 4,29,406.1 crore (net of refund).

The gross collection of Direct Taxes (before adjusting for refunds) for the F.Y. 2021-22 (as on 16.12.2021) stands at Rs. 10,80,370.2 crore compared to Rs. 7,33,715.2 crore in the corresponding period of the preceding financial year.The gross collection for the F.Y. 2019-20 was Rs. 8,34,398 crore and that for F.Y. 2018-19 was Rs. 7,96,342 crore in the corresponding period.

The gross collection of Rs. 10,80,370.2 crore includes Corporation Tax (CIT) at Rs. 6,05,652.6 crore and Personal Income Tax (PIT) including Security Transaction Tax(STT) at Rs. 4,74,717.6 crore. Minor head wise collection (as on 16.12.2021) comprises Advance Tax of Rs. 4,59,917.1 crore, Tax Deducted at Source of Rs.4,93,171.7 crore, Self-Assessment Tax of Rs. 74,336.2 crore; Regular Assessment Tax of Rs. 44,028.7 crore; Dividend Distribution Tax of Rs. 6,525.9 crore and Tax under other minor heads of Rs. 2390.6 crore.

The cumulative Advance Tax collections for the first, second and third quarter of the F.Y. 2021-22 stand at Rs. 4,59,917.1 crore as on 16.12.21, against Advance Tax collections of Rs. 2,99,620.5 crore for the corresponding period of the immediately preceding Financial Year i.e 2020-21, showing a growth of 53.5%(approx). Further, the cumulative Advance tax collection of Rs. 4,59,917.1 crore as on 16.12.2021 (FY 2021-22) shows a growth of 44.21% over the corresponding period in FY 2019-20 when the advance tax collection(cumulative) was Rs 3,18,929.4 crore and a growth of 49.76 % over the corresponding period in FY 2018-19 when the advance tax collection(cumulative) was Rs 3,07,096.3 crore.

The Advance tax figure of Rs 4,59,917.1 crore as on 16.12.2021 comprises Corporation Tax (CIT) at Rs. 3,49,045.4 crore and Personal Income Tax (PIT) at Rs. 1,10,871.7 crore. This amount is expected to increase as further information is awaited from Banks.

Refunds amounting to Rs. 1,35,093.6 crore have also been issued in the F.Y. 2021-22 so far.

(SurabhiAhluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT