News Analysis India

Tag: IT raids

  • I-T dept finds Rs 100 cr worth unaccounted transactions after raids on Jharkhand Cong MLAs, aides

    By PTI

    NEW DELHI: The Income-tax department has detected “unaccounted” transactions and investments worth more than Rs 100 crore after it raided two Jharkhand Congress MLAs, their alleged associates and linked coal and iron ore businesses across the state last week.

    The CBDT said in a statement on Tuesday that 50 premises in Ranchi, Godda, Bermo, Dumka, Jamshedpur and Chaibasa in Jharkhand, Patna (Bihar), Gurugram (Haryana), and Kolkata (West Bengal) were covered during the searches launched on November 4.

    The two MLAs, on the day the searches were initiated, were identified by the officials as Kumar Jaimangal alias Anup Singh and Pradip Yadav.

    Jaimangal, a legislator from Bermo seat, also spoke to reporters outside his Ranchi residence that day confirming the action, saying he was extending all cooperation to the raiding teams.

    Yadav, who joined the Congress after splitting from the JVM-P, represents Poriyahat assembly seat.

    READ HERE | Illegal mining row: Relief to Jharkhand CM Hemant Soren as SC sets aside HC order

    The Congress is a partner of the JMM-led ruling alliance in the state led by Chief Minister Hemant Soren.

    The CBDT statement said the action was taken against “few business groups engaged in coal trading/transportation, execution of civil contracts, extraction of iron ore and production of sponge iron.

    “Those searched include two politically exposed persons and their associates,” it said.

    The Central Board of Direct Taxes (CBDT) is the policy-making body for the I-T department.

    It said cash worth more than Rs 2 crore has been seized and “unaccounted transactions/investments exceeding Rs 100 crore were detected so far.”

    The searches also led to the seizure of large number of “incriminating” documents and digital evidences,it said.

    “A preliminary analysis of these evidences indicates that these groups have resorted to various modus-operandi of tax evasion including inflation of expenses, transactions of loans in cash, payments/receipts in cash and suppression of production. It has been found that investments have been made in immovable properties, the source of which could not be fully explained,” the CBDT alleged.

    It was found that one of the groups engaged in civil contracts was “not” maintaining regular books of account, it said.

    “The group has been inflating its expenses by entering into non-genuine transactions of purchase of raw material/sub-contract expenses in lumpsum at the fag end of the year. Evidences seized also suggest that unfair payments in cash have been made to secure contracts,” the CBDT claimed.

    In the case of the other group engaged in coal trading/extraction of iron ore etc, “unaccounted” stock of iron ore of huge value has been found, which is yet be quantified, the statement said.

    “The said group has also introduced its unaccounted money in the form of unsecured loans and share capital by layering the transactions through shell companies. Professionals associated with this group have admitted that they had not verified any supporting documents and had signed the audit report prepared by the group’s accountant without due diligence,” the CBDT alleged.

    Jaimangal, in August, lodged a police complaint against three MLAs of his party — Irfan Ansari, Rajesh Kachchap and Naman Bixal Kongari– alleging that they were plotting to topple the ruling UPA government in Jharkhand led by Chief Minister Hemant Soren.

    The complaint was filed after the three Congress MLAs were arrested with cash in West Bengal in July.

    State Congress spokesperson Rajiv Ranjan had alleged on the day of the searches that the tax department action was part of an operation to destabilise governments in non-BJP ruled states.

    NEW DELHI: The Income-tax department has detected “unaccounted” transactions and investments worth more than Rs 100 crore after it raided two Jharkhand Congress MLAs, their alleged associates and linked coal and iron ore businesses across the state last week.

    The CBDT said in a statement on Tuesday that 50 premises in Ranchi, Godda, Bermo, Dumka, Jamshedpur and Chaibasa in Jharkhand, Patna (Bihar), Gurugram (Haryana), and Kolkata (West Bengal) were covered during the searches launched on November 4.

    The two MLAs, on the day the searches were initiated, were identified by the officials as Kumar Jaimangal alias Anup Singh and Pradip Yadav.

    Jaimangal, a legislator from Bermo seat, also spoke to reporters outside his Ranchi residence that day confirming the action, saying he was extending all cooperation to the raiding teams.

    Yadav, who joined the Congress after splitting from the JVM-P, represents Poriyahat assembly seat.

    READ HERE | Illegal mining row: Relief to Jharkhand CM Hemant Soren as SC sets aside HC order

    The Congress is a partner of the JMM-led ruling alliance in the state led by Chief Minister Hemant Soren.

    The CBDT statement said the action was taken against “few business groups engaged in coal trading/transportation, execution of civil contracts, extraction of iron ore and production of sponge iron.

    “Those searched include two politically exposed persons and their associates,” it said.

    The Central Board of Direct Taxes (CBDT) is the policy-making body for the I-T department.

    It said cash worth more than Rs 2 crore has been seized and “unaccounted transactions/investments exceeding Rs 100 crore were detected so far.”

    The searches also led to the seizure of large number of “incriminating” documents and digital evidences,it said.

    “A preliminary analysis of these evidences indicates that these groups have resorted to various modus-operandi of tax evasion including inflation of expenses, transactions of loans in cash, payments/receipts in cash and suppression of production. It has been found that investments have been made in immovable properties, the source of which could not be fully explained,” the CBDT alleged.

    It was found that one of the groups engaged in civil contracts was “not” maintaining regular books of account, it said.

    “The group has been inflating its expenses by entering into non-genuine transactions of purchase of raw material/sub-contract expenses in lumpsum at the fag end of the year. Evidences seized also suggest that unfair payments in cash have been made to secure contracts,” the CBDT claimed.

    In the case of the other group engaged in coal trading/extraction of iron ore etc, “unaccounted” stock of iron ore of huge value has been found, which is yet be quantified, the statement said.

    “The said group has also introduced its unaccounted money in the form of unsecured loans and share capital by layering the transactions through shell companies. Professionals associated with this group have admitted that they had not verified any supporting documents and had signed the audit report prepared by the group’s accountant without due diligence,” the CBDT alleged.

    Jaimangal, in August, lodged a police complaint against three MLAs of his party — Irfan Ansari, Rajesh Kachchap and Naman Bixal Kongari– alleging that they were plotting to topple the ruling UPA government in Jharkhand led by Chief Minister Hemant Soren.

    The complaint was filed after the three Congress MLAs were arrested with cash in West Bengal in July.

    State Congress spokesperson Rajiv Ranjan had alleged on the day of the searches that the tax department action was part of an operation to destabilise governments in non-BJP ruled states.

  • I-T raids at premises linked to businessmen in Chhattisgarh; Congress takes dig at Centre

    By PTI

    RAIPUR: The Income Tax Department on Wednesday conducted raids at multiple locations linked to some businessmen in Chhattisgarh, police officials said.

    The searches are underway since early this morning in different districts including Raipur and Raigarh.

    Police officials in these districts confirmed that the IT teams assisted by the Central police force are present at the premises, including offices, of some steel and coal traders and civil contractors.

    The nature of the action being carried out by the I-T department is not yet clear, they said.

    Chhattisgarh Chief Minister Bhupesh Baghel told reporters at the Raipur airport that he had already predicted raids by the Income Tax and the Enforcement Directorate (ED).

    “I had said (that raids will happen)… now ED will also follow them,” Baghel said when asked about the action by the IT department.

    Last week, Baghel had said his “well-wishers” informed him that Chhattisgarh will soon see raids by the ED and IT because MLAs of the ruling UPA coalition from neighbouring Jharkhand were staying at a resort near Raipur.

    The legislators of the JMM-Congress-RJD coalition had stayed in the resort for six days before they were flown back to Ranchi on Sunday.

    Commenting on the raids, Chhattisgarh Congress communication wing’s chief Sushil Anand Shukla alleged the Modi government has been misusing the Central probe agencies.

    “There are reports that raids are being carried out by I-T at the premises of some businessmen. The way the Modi government is misusing Central investigation agencies, a slogan ‘kednra sarkar ke teen jamai (sons-in-law), ED, IT, and CBI’ has become common among people,” he said.

    Shukla alleged the Modi government has misused the Central agencies against its political opponents so much in the last eight years that even when I-T conducts raids as part of the routine investigation it is also seen as a politically motivated exercise.

    In June-July this year, the I-T department raided several places in Chhattisgarh including the premises of coal trader Suryakant Tiwari and the house of a government official posted at the Chief Minister’s Office (CMO).

    RAIPUR: The Income Tax Department on Wednesday conducted raids at multiple locations linked to some businessmen in Chhattisgarh, police officials said.

    The searches are underway since early this morning in different districts including Raipur and Raigarh.

    Police officials in these districts confirmed that the IT teams assisted by the Central police force are present at the premises, including offices, of some steel and coal traders and civil contractors.

    The nature of the action being carried out by the I-T department is not yet clear, they said.

    Chhattisgarh Chief Minister Bhupesh Baghel told reporters at the Raipur airport that he had already predicted raids by the Income Tax and the Enforcement Directorate (ED).

    “I had said (that raids will happen)… now ED will also follow them,” Baghel said when asked about the action by the IT department.

    Last week, Baghel had said his “well-wishers” informed him that Chhattisgarh will soon see raids by the ED and IT because MLAs of the ruling UPA coalition from neighbouring Jharkhand were staying at a resort near Raipur.

    The legislators of the JMM-Congress-RJD coalition had stayed in the resort for six days before they were flown back to Ranchi on Sunday.

    Commenting on the raids, Chhattisgarh Congress communication wing’s chief Sushil Anand Shukla alleged the Modi government has been misusing the Central probe agencies.

    “There are reports that raids are being carried out by I-T at the premises of some businessmen. The way the Modi government is misusing Central investigation agencies, a slogan ‘kednra sarkar ke teen jamai (sons-in-law), ED, IT, and CBI’ has become common among people,” he said.

    Shukla alleged the Modi government has misused the Central agencies against its political opponents so much in the last eight years that even when I-T conducts raids as part of the routine investigation it is also seen as a politically motivated exercise.

    In June-July this year, the I-T department raided several places in Chhattisgarh including the premises of coal trader Suryakant Tiwari and the house of a government official posted at the Chief Minister’s Office (CMO).

  • Top Vivo executives may have fled India amid ED’s money laundering probe

    By IANS

    NEW DELHI: Chinese smartphone company Vivo’s top executives, Directors Zhengshen Ou and Zhang Jie, likely fled India on Wednesday after the Enforcement Directorate (ED) conducted raids at its offices in connection with a prevention of money laundering case.

    Sources said that Zhengshen and Zhang may have fled the country via the Nepal route amid fears that they may be arrested. Vivo did not comment on the development.

    The raids were conducted at nearly 44 locations in Uttar Pradesh, Madhya Pradesh, Bihar and in southern states, on Tuesday in connection with the Prevention of Money Laundering Act (PMLA), 2002.

    Sources said the office of Vivo and the premises of a few other Chinese firms were raided. The CBI has also been probing the case and lodged a separate first information report.

    In a statement to IANS, Vivo had said that it is cooperating with the authorities to provide them with all required information. “As a responsible corporate, we are committed to be fully compliant with laws,” a company spokesperson said.

    In April, the ED seized Rs 5,551.27 crore of Xiaomi Technology India Private Ltd lying in the bank accounts under the provisions of Foreign Exchange Management Act (FEMA) connection with the illegal outward remittances made by the company.

  • I-T department raids Noida-based real estate group over tax evasion probe

    By PTI

    NEW DELHI: The Income Tax department on Tuesday raided multiple premises linked to a Noida-based real estate group as part of a tax evasion investigation against it and others, official sources said. They said that offices and residential locations of the ACE group in Noida and Greater Noida in Uttar Pradesh, apart from a few other places like Baghpat, are being covered.

    Ajay Choudhary is the CMD of the realty group, which said it was “fully cooperating” with the concerned agencies. “As a law-abiding company, we strictly adhere to all laws, rules and regulations. Income-Tax (department) had raided the group three months back and even at that time the group had fully cooperated with the agency,” an ACE group spokesperson said.

    The sources said that the realty group is stated to have developed commercial and residential projects in Noida, Greater Noida and some other locations in the National Capital Region. The tax authorities are also raiding an Agra-based group engaged in shoe business on similar charges.

    The sources said that another Uttar Pradesh-based group was also being searched. They said some of those raided have political links and the I-T department has recovered tax-related documents during the surprise action that began early morning along with police escort.

  • Kanpur: In biggest recovery ever, CBIC unearths Rs 150 cr cash in raids on perfume company

    By ANI

    KANPUR: Vivek Johri, the Chairman of Central Board of Indirect Taxes and Customs (CBIC) on Friday said that the cash recovery of approximately Rs 150 crores from searches in Kanpur at several locations related to Trimurti Fragrance is the “biggest haul ever”. The teams of CBIC are currently at various premises of businessman Piyush Jain counting cash.

    “We got the information that Trimurti Fragrances was working without an invoice or tax payment. We searched their three entities and recovered approximately Rs 150 crore cash. This is the biggest recovery ever in the history of CBIC,” Johri told ANI.

    #WATCH | As per Central Board of Indirect Taxes and Customs chairman Vivek Johri, about Rs 150 crores have been seized in the raid, counting still underway.Visuals from businessman Piyush Jain’s residence in Kanpur. pic.twitter.com/u7aBTJhGxW
    — ANI (@ANI) December 24, 2021
    Briefing about the details of the searches, Johri said, “Ahemdabad unit of DGGI received intelligence that pan masala and G company Trimurti Fragrance, manufacturers of a branded Gutkha, are transporting materials without any invoices and without paying taxes.”

    “DGGI Ahemdabad team started searches on the manufacturer of Pan Masala and their supplier. A transporter and a fragrance company of Unnao were also searched as they were providers of fragrance to the pan masala company,” he added.

    Johri also said that one of the parties involved has accepted the case of tax evasion and has deposited Rs 3 crore for the same.

    “No arrest has been made yet,” he added.

    As per the GST law, if the invoice is more than a certain limit, then it is necessary to generate invoices.

    During searches, DGGI found an item on which the Goods and Services Tax (GST) tax rate was 28 per cent plus cess, Johri informed.

    “The probe further revealed that these people were dispatching material without any invoice and e-way bills. Two-three parties are involved in this. All the invoices we found were fake. Value of the item suppressed,” Johri added.

    “A case of fake invoicing and fake credit has been reported…Those involved were dispatching material without any invoice and e-way bills. All the invoices we found were fake. Value of the item suppressed,” he informed.

    The CBIC Chairman also informed that counting of the seized cash is underway.

  • IT dept unearthed huge no of black assets, overseas accounts after recent raids: CBDT

    By PTI

    NEW DELHI: The Income Tax Department unearthed “a large number” of undisclosed foreign bank accounts and assets after it recently raided multiple business groups based in Mumbai, Noida and some other places, the CBDT claimed on Monday.

    It said searches were conducted at 37 premises in Mumbai, Pune, Noida and Bengaluru on September 30 on groups and individuals involved “in varied businesses such as cable manufacturing, real estate, textile, printing machineries, hotels, logistics etc.”

    Several incriminating documents, loose sheets, diaries, emails and other digital evidence have been unearthed which indicates ownership of a large number of foreign bank accounts and immovable properties, unreported to the department, it said in a statement.

    “These groups/individuals utilised the services of a Dubai-based financial service provider to create a dubious and complex web of foreign companies and trusts based in tax havens such as Mauritius, UAE, British Virgin Islands, Gibraltar etc. to hold their unaccounted assets,” the CBDT said.

    It claimed that the “credits in the bank accounts of these groups and individuals maintained by the Dubai based financial service provider exceed USD 100 million (about Rs 750 crore).”

    These were accumulated over a decade and were found to be parked in bank accounts in Switzerland, UAE, Malaysia and several other countries, the statement said.

    It said tax authorities seized cash and jewellery worth Rs 2 crore during the raids, and 50 bank accounts were put under restraint.

    “Evidence gathered during the search operation revealed that the undisclosed funds parked abroad have been used by these groups for acquiring immovable properties in several countries such as the UK, Portugal, UAE in the name of defunct companies incorporated abroad, with funds layered through foreign bank accounts, for meeting the personal expenses of promoters and their family members abroad and routing back funds in their Indian entities,” it said.

  • IT department widens probe against actor Sonu Sood; searches multiple premises

    By PTI

    MUMBAI: The Income Tax Department has widened its tax evasion probe against actor Sonu Sood as it raided multiple premises in Mumbai, Nagpur and Jaipur on Friday, official sources said.

    The department had launched the action against the 48-year-old actor and some people linked to him on Wednesday and the action continued.

    The searches have now been extended to more locations in Mumbai, Nagpur and Jaipur, they said.

    On Wednesday, the action was carried out in at least half a dozen locations in the metropolitan city and Lucknow.

    A real estate deal and some other financial transactions linked to Sood are under the scanner of the department, official sources had said.

    The actor grabbed the national spotlight for helping migrants reach their home states during the nationwide lockdown clamped last year in the wake of the COVID-19 pandemic.

    The Delhi government, led by Chief Minister Arvind Kejriwal, had recently declared that Sood will be the brand ambassador of the Aam Aadmi Party government’s ‘Desh ka mentors’ programme under which students will be guided in making their career choices.

    Kejriwal had said on Saturday that Sood had the prayers of lakhs of families of India who got his support in difficult times.

  • Modi govt can’t tolerate even slightest criticism: Ashok Gehlot on Dainik Bhaskar raids

    By PTI
    JAIPUR: Rajasthan Chief Minister Ashok Gehlot on Thursday slammed the Income Tax raids at the offices of media houses, terming them as an attempt to suppress their voice.

    The Income Tax Department on Thursday conducted raids against two prominent media groups, Dainik Bhaskar and Uttar Pradesh-based Hindi news channel Bharat Samachar, in multiple cities on charges of tax evasion, official sources said.

    FULL STORY | Income department raids multiple premises of media group Dainik Bhaskar

    Gehlot charged that Prime Minister Narendra Modi led government cannot tolerate even the slightest criticism.

    “Income tax raid on the offices of Dainik Bhaskar newspaper and Bharat Samachar news channel is an attempt to suppress the media.

    Modi government cannot tolerate even the slightest criticism.

    This is the fascist mentality of BJP which does not like to see the mirror of truth in democracy,” Gehlot said in a tweet.

    He charged that by taking such action, the Modi government wants to send a message to media houses that if they are not in their favour then their voice will be crushed.

  • Over Rs 650 crore discrepancies found after raids on Taapsee Pannu, Anurag Kashyap and others, claims IT Dept

    By PTI
    NEW DELHI: The Income Tax Department has detected financial irregularities of over Rs 650 crore after it raided two film production companies, two talent management companies and a leading actress, the Central Board of Direct Taxes claimed on Thursday but did not take any names.

    The statement from the CBDT came as raids on the homes and offices of Bollywood actor Taapsee Pannu, director Anurag Kashyap and his partners who launched the now-shuttered Phantom Films continued in Mumbai, Pune and Hyderabad for the second day.

    The searches also covered some executives of celebrity and talent management companies KWAN and Exceed, officials said.

     A day later, without naming the people or companies searched, the CBDT said the entities searched were mainly engaged in the business of production of motion pictures, web series, acting, direction and talent management of celebrities and other artists.

    Official sources identified the entities raided as Pannu and the four former promoters of Phantom Films — Kashyap, director-producer Vikramaditya Motwane, producer Vikas Bahl and producer-distributor Madhu Mantena.

    ALSO READ | NCP says Income Tax raids on Anurag Kashyap, Taapsee Pannu ‘a bid to curb voices of dissent’

    They also identified the celebrity and talent management companies as Kwan and Exceed.

    The second film production company that was raided belongs to Kashyap, the sources said.

    “Evidence of huge suppression of income by the leading film production house compared to the actual box office collections has been unearthed,” the statement from CBDT, the administrative body of the IT Department, claimed.

    “The company officials have not been able to explain the discrepancy of around Rs 300 crore,” it said.

    Evidence related to “manipulation and under-valuation” of share transactions of the production house amongst the film directors and shareholders, with a tax implication of about Rs 350 crore has also been found and is being further investigated, it alleged.

    “Evidence of cash receipts by the leading actress amounting to Rs 5 crore has been recovered and further investigation is going on,” the CBDT claimed.

    Also, “non-genuine or bogus expenditure” to related concerns by the leading producers and directors having tax implication of about Rs 20 crore has been detected, the statement said.

    “Similar findings have been made in the case of the leading actress also,” it alleged.

    The statement added that a “huge amount” of digital data has been seized in the form of emails, WhatsApp chats, hard disk from the offices of the two talent management companies.

    A total of seven bank lockers were found and placed under restraint, the CBDT statement said.

    ALSO READ | Government trying to harass farmers, supporters: SKM on I-T raids at premises of Taapsee Pannu, Anurag Kashyap

    The searches against Mantena are also being carried out in context of his links with KWAN, of which he is a co-promoter, officials said.

    While Kwan’s client list includes Deepika Padukone, Exceed manages Saif Ali Khan and Sonakshi Sinha among others.

    Pannu, 33, and Kashyap, 48, both known to be outspoken in their views on a range of issues, were shooting in Pune on Wednesday and were understood to have been questioned by the tax sleuths as part of the preliminary questioning that takes place during raids.

    Kashyap and Pannu, who worked together in the 2018 film “Manmarziyaan”,  are now collaborating in the upcoming film “Dobaara”.Pannu’s last tweet was on March 1, when she spoke on the Supreme Court asking a man accused of repeated rape whether he was willing to marry the woman.

    When the court was told he is already married, he was asked to seek regular bail from the concerned court.

    The actor, who has made a name for herself in films such as “Pink”, “Thappad” and “Badla”, put out a strong-worded post on the matter.

    Kashyap, who had visited JNU and Shaheen Bagh during the anti-CAA protests last year and is also known to be vocal about his views, has been quiet on Twitter in recent times except for occasionally retweeting others.

    Ruling allies Congress and NCP in Maharashtra had criticised the raids and termed them an attempt to suppress the voices of those who speak against the Narendra Modi-led government.

    The raids also attracted huge attention on social media platforms.