Ministry of Finance
The Income Tax Department conducts research on groups involved in the digital marketing and waste management business
Published on: 17 OCT 2021 11:54 by PIB Delhi
The Income Tax Department initiated search and seizure operations on October 12, 2021 in two groups based in several states.
The first group deals with digital marketing and campaign management, with searches being carried out in 7 locations in Bengaluru, Surat, Chandigarh and Mohali.
Incriminatory evidence found shows the group was involved in obtaining property listings through a listing provider. The entry operator has admitted to facilitating the transfer of cash and unrecognized earnings for the group through hawala operators.
Inflation in expenditure and inadequate recording of income were also noted. The concern was also found to be making unproven cash payments. It is also found that directors’ personal expenses were recorded as business expenses in the books of accounts. It was found that luxury vehicles used by the directors and their family members were purchased on behalf of the staff and the entry provider.
The second group sought deals with solid waste management, which includes the collection, transport, processing and disposal of solid waste across the country, mainly for Indian communities.
In the course of the search, various incriminating documents, loose papers and digital evidence were found. The evidence found shows that this group posted fake invoices for expenses and subcontracting. A preliminary estimate of the counterfeit expenses posted is Rs.70 crore.
The search led to the discovery of unrecorded property investments of around Rs. 7 million. That being said, the search resulted in the seizure of unrecorded cash from Rs. 1.95 crore and jewelry from Rs. 65 lakh.
Further investigations are ongoing in both groups.
RM / KMN
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Ministry of Finance of the Republic of India published this content on October 17, 2021 and is solely responsible for the information contained therein. Distributed by public, unedited and unchanged, on October 17, 2021 6:51:01 AM UTC.