Income Tax Department conducts searches in Pune

On November 11, 2021, the Income Tax Department conducted a search and seizure operation at a group in Pune that manufactures heavy machinery such as excavators, cranes, and concrete machinery for use in mining, piling, and ports, among other things. The search operation took place at approximately 25 places across seven Indian cities.

Several damning documents and electronic data were discovered and seized during the search. The assesses has been suppressing its profit through various malpractices such as artificially lowering sales through credit notes, bogus claim of expenses through unsubstantiated trade payables, non-genuine claim of expenses on unused free-of-charge services, non-verifiable commission expenses to related parties, wrongful revenue deferment, and incorrect depreciation claims, among others. Evidence of cash receipts by dealers/brokers, unaccounted investment in properties, and unaccounted cash loans have also been discovered and seized in the case of connected businesses.

The search operation resulted in the seizure of Rs. 1 crore in unaccounted cash and jewelry. Three bank lockers discovered during the investigation have been put under lock and key.

A total of Rs. 200 crore in undeclared income was discovered as a result of the search operation. The assesses group has admitted to unexplained income of Rs. 120 crore so far.

More research is being carried out.