Fudged A/cs, Tax Evasion worth Crores Found: CBDT
The Ministry of Income Tax has reported alleged stock manipulation, falsification of accounts and tax evasion worth millions of rupees following a recent raid on two manufacturing and real estate groups based in Uttar Pradesh.
While a statement issued by the Central Council of Direct Taxes (CBDT), the tax department's policy-making body, did not mention any entity, sources said they were associated with the Samajwadi Party MLC Pushpraj alias Pampi Jain and other perfumer Fauzan Malik. . The search took place on 31 December in more than 40 areas in Maharashtra, Delhi, Tamil Nadu, Gujarat and some areas of Uttar Pradesh, including Kannauj, where Jain lives.
The CBDT said it found that one of the group was "involved in tax evasion by not reporting perfume sales, manipulating supplies, falsifying books to generate tax revenue.
"Evidence from sales and headquarters shows that the group makes 35-40% of its retail cash sales through 'cook' accounts and that this cash income is not recorded in current accounts of up to millions of rupees," he said. claims.
An analysis of the "incriminating" evidence shows that the generated "innumerable" income was invested in various real estate projects in Mumbai, real estate acquisitions in India and the United Arab Emirates (UAE). . The CBDT admitted that the group's promoters included some offshore entities that were not reported for income tax.