Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 07th November, 2019

PRESS RELEASE

Income Tax Department conducts search on a prominent business group in Pune

Income Tax Department conducted searches on a prominent business group in Pune on 06/11/2019 under the Income Tax Act, 1961. The searches were conducted at various places covering the cities of Pune, Mumbai, Nagpur, Delhi, Bengaluru and Noida. A total of 15 premises were covered in search action under section 132 and 13 premises were covered under section 133A. The group has diversified business activities and provides services in the areas of mechanized house-keeping, landscaping and gardening, civil and electrical maintenance, fabrication services, turnkey solutions, logistic support and other services required by government agencies and municipal corporations. The search was carried out based on specific information regarding the claim of bogus losses, bogus purchases and bogus sub-contract expenses.

The search and seizure action has led to unearthing of incriminating evidence regarding bogus claim of brought-forward losses of ₹ 91 crore pursuant to scheme of demerger which is not found in accordance with the provisions of I.T. Act, 1961. Bogus expenses in the form of unsubstantiated purchases to the tune of ₹ 77 crore have also been detected so far and further verification is in progress. Evidence has also been found in respect of cash expenses to the tune of ₹ 20 crore. Further, unaccounted cash of ₹ 60 Lakh has been found. Several lockers have been found and put under restraint. Based on evidence unearthed so far, undisclosed income to the tune of ₹ 180 crore from A.Y. 2016-17 onwards has been detected. Search proceedings are still under progress.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Search and seizure under the Income Tax Act uncovers undisclosed income from bogus losses and purchases, probe continues. Search and seizure action under the Income Tax Act using statutory powers at multiple premises uncovered evidence of alleged bogus losses, bogus purchases and fabricated subcontract expenses; a brought forward loss claimed pursuant to a demerger is indicated as not compliant with the Act, unaccounted cash and restrained lockers were found, and provisional detection of substantial undisclosed income from assessment years beginning 2016 17 has been reported while verification continues.