Income Tax Department carried out search and seizure operations on 17.02.2021 on a group based in Sangamner, Pune at 34 different locations across Maharashtra. The group entities are largely engaged in packaging and sale of tobacco and related products, generation and distribution of power, sale of FMCGs, and real estate development.

During the course of the search operation, hand written and excel sheets maintained on computer revealed unrecorded cash sale transactions amounting to ₹ 243 crore related to sale of tobacco. In addition to this, action on some dealers in tobacco products revealed further unrecorded sale by them amounting to ₹ 40 crore approximately.

The group is also accepting and paying cash over and above the registration value in transactions relating to real estate. Evidence of transactions amounting to ₹ 18 crore was found in this regard. Issues relating to violations of section 50C of the Income-tax Act, 1961 amounting to ₹ 23 crore have also been found.

During the course of the search operation, profit on unrecorded transactions of sale of real estate amounting to ₹ 9 crore has been accepted by the assessee. Seizure of unaccounted cash of ₹ 1 crore has been made. Total undisclosed income amounting to ₹ 335 crore has been detected so far.

Further investigations are in progress.

Search and seizure uncovers undisclosed income and unrecorded transactions, triggering tax compliance investigation and seizure action. Search and seizure operations across Maharashtra uncovered extensive unrecorded cash sales in the tobacco business, additional unrecorded dealer sales, and cash over and above registered values in real estate transactions. Seized handwritten and electronic records evidenced these unrecorded transactions; investigators identified potential violations of section 50C, seizure of unaccounted cash, and acceptance by the assessee of profit on unrecorded real estate sales, with further inquiries ongoing to determine the full tax implications.