Income Tax Raids in UP; Undisclosed Income of over Rs.1200 Crore detected

The Income Tax Department has raided four separate Uttar Pradesh-based groups engaged in manufacturing of agro food products and detected undisclosed income of more than Rs.1200 crore.

I-T sources also said that another Rs 1,000 crore in cash had been taken out of numerous fictitious bank accounts. According to department sources, the I-T investigation team from Uttar Pradesh added it as a kind of record.

The raids began on December 20 and ended on Saturday. They were conducted at more than 40 locations in the districts of Bareilly, Unnao, and Lucknow.

According to information provided by IT officials, raids were conducted at the premises of Rustam Foods Private Limited in Lucknow and Unnao, as well as Rehber Food Industries Pvt. Ltd, Al-Sumama Agro Foods Pvt. Ltd, and Marya Frozen Agro Food Pvt. Ltd in Bareilly.

Additionally, the I-T department has sealed apartments in Shalimar Grand and a villa in Shalimar Paradise that belong to Shakeel Qureshi, a partner in Salim’s business.

The businessmen and his partners allegedly misappropriated crores over a three-year period using various “dummy bank accounts,” according to sources.

Sources added that evidence has been discovered indicating the suppression of significant income due to profit sharing in joint ventures, which is not reflected in the regular books of accounts.

Several “fictitious” entities were used to claim fictitious purchases and subcontract expenses.

These organisations have been “suppressing” their taxable income over the past few years by recording fictitious purchases and expenses in their books of account, according to preliminary analysis of documents and digital devices that have been seized.