The Income Tax department has uncovered a huge amount of black money and undisclosed income from some major catering and pandal operators in the national capital.
The Income Tax department on Tuesday uncovered a huge amount of black money and undisclosed income from some major catering and pandal operators in the national capital. The disclosure comes after the tax department conducted raids at several locations in and around Delhi-NCR. Undisclosed income to the tune of over Rs 100 crore has been uncovered.
As per news agency PTI, the raids were conducted by the department’s Delhi Investigation wing at around 43 premises of three major tent and catering operators since May 3. The agency has so far discovered a cash amount of Rs 1.82 crore and jewellery worth Rs 2.4 crore.
According to investigators, the raids also saw the department recover cell phones through which the operators used to deal with the clients through text messages and WhatsApp chats. The agency also found that the operators largely used to deal in cash amounts instead of cheque or online payments.
“All these messages on mobile phones and documents showing undisclosed cash receipts have been seized and are being scrutinised. These businessmen were evading tax for many years by under-reporting their sales and service charges,” a senior official told news agency PTI.
The department has also frozen around 15 bank lockers of the operators.
“Some of these entities have also claimed bogus expenses in the form of purchases from shell companies. The extent of evasion, in some cases, is about 100 percent of the income earned,” an IT official told PTI.
The Income Tax department is also examining the list of high profile clients who used to deal with these catering and pandal operators by making payments in cash.
In a notification last year, the Centre had banned cash transactions of Rs 2 lakh and above in a bid to curb black money.