Income Tax Department conducts search operations in Delhi

Income Tax Department conducts search operations in Delhi On November 24, 2021, the Income Tax Department launched a search action against a Delhi-based taxpayer who established a beneficiary trust and an underlying firm in a low-tax overseas country. The search activity included the assessee's residence and business sites. These concealed entities in low-tax overseas jurisdictions held assets worth Rs. 40 crore in the form of immovable and moveable assets, according to the search. The taxpayer was using the services of a foreign bank with operations in India that provides wealth management, financial planning, asset allocation, stock research, fixed income, investment strategies, and fiduciary services, among other things. Corroborating evidence in the form of e-mails and documents was discovered during the search operation at his home, proving his beneficial ownership of the overseas assets. He admitted to owning foreign assets in a statement recorded during the search. One hard drive carrying data in the form of a parallel set of books of accounts was discovered at the business premises. According to a preliminary examination of the data gathered, there is a Rs. 30 crore underestimation of domestic income from company conducted in India. Further investigations are being carried out.