Income Tax Department raid two Famous groups engaged in manufacturing electrical switches, real estate and hotel business

On December 22, 2021, the Income Tax Department conducted search and seizure operations on two groups and their commercial enterprises. In Rajasthan, Maharashtra, and Uttarakhand, one group is in the industry of producing electrical switches, wires, LEDs, real estate, and hotels, while the other is in the business of money lending in Jaipur and adjacent cities. The search operation spanned more than 50 locations across India, including Jaipur, Mumbai, and Haridwar.

During the search, a huge amount of damning documents and digital data were discovered and seized.

Several businesses engaged in the business of manufacturing switches, wires, LEDs, and other electronic components have been selling goods that are not documented in the standard books of account, according to a preliminary review of confiscated evidence. During the investigation, it was discovered that they were claiming fictitious expenses in order to lower their taxable income. The trail of cash component receipt on unaccounted sale of items was also discovered. The search team discovered transactions indicating concealed revenue of more than Rs.150 crore in this case. The group’s major figure has admitted to having undeclared income of Rs.55 crore and has pledged to pay tax on it.

The majority of the loans are granted in cash, and a rather high rate of interest has been levied on these loans, according to the analysis of confiscated and other associated papers belonging to the other group. The loans made, as well as the interest income received on them, have not been mentioned in the income tax returns of the people involved in this firm. This gang has been found to have evidence of concealed revenue of more than Rs.150 crore.

So far, the search operation has yielded a total of Rs.17 crore in undeclared cash and jewellery.

More research is being carried out.