News Update

GST Compensation - Centre releases 12th Instalment of Rs 6,000 croreI-T - Due dates for filing of audit reports & ITRs cannot be delayed indefinitely, on whims & fancies of taxpayers: HCGST - Cross-empowerment - In case the action of State and Central Authorities is overlapping, Petitioner would be at liberty to take action to impugn the same in accordance with law: HCCus - In absence of challenge to the certificate issued by APPCB and refusal of petitioners to implead APPCB as a party respondent, it would not be appropriate to adjudicate on the same: HCSVLDRS, 2019, although a beneficial scheme for a declarant, is statutory in nature: HCWords 'tax dues' as provided in s.123 of the SVLDRS shows that it is not expansive in nature inasmuch as it starts with the word 'means': HCOne more ITC fraud detected; 21 premises raided in DelhiJapan reveals Draft Budget 2021 proposing over USD one trillion expenditureThree UK joins hands with TCS for roll-out of 5G servicesNDPS - s.42 - 'Ruqa' which contained secret information already sent to superior officer, SHO - Insisting upon sending secret information separately would be a pedantic approach: HCNDPS - Since it is a case of recovery of contraband from a vehicle while in transit, it would be s.43 of the Act which would be applicable in the matter of procedure and not s.42: HCIndia reports lowest daily COVID-19 deaths in 8 monthsNDPS - Quantity of contraband falls in the category of 'commercial quantity' - fetters imposed by s.37 applicable in the matter of grant of bail - a liberal approach is uncalled for: HCGST - Petitioner, being spouse of the accused, does not have any locus standi while approaching Court, seeking copies of summons/arrest memo and panchnama: HCCus - Photographs are secondary evidence & whose appearances can vary with angle of photography - Classification of LED modules as LED chains, based on photographs alone, is not sustainable: CESTATUnexplained investment - Additions framed based on bills found in Search operation at third party premises are upheld, as assessee accepted bill in its name: ITATUnabsorbed short term brought forward capital loss can be set off against the income arising in current AY: ITATPM Modi flags off 8 trains to boost connectivity and tourism to KevadiyaRe-assessment - assessee baldly stated to not have received notice without rebutting Revenue's postage pre-paid, proving proper service of notice at assessee's correct address - Proceedings upheld: ITAT79.24 Lac farmers benefit from govt's MSP operations this kharif seasonAssessee provides vehicles to Govt agencies engaged in solid waste management system - Deduction u/s 80IA allowed thereon: ITAT2.24 lakh vaccinated in India in two days; 3 hospitalisation reportedPutin’s arch rival Navalny arrested on arrival from GermanyStatue of Unity - Kevadia has become global tourist destination: PM8000 startups registered on GeM, Done business worth Rs 2300 Cr: PMMinistry of Panchayati Raj bags SKOCH Award for transparency in governanceArmin Laschet elected as Germany’s Christian Party leader; now in race to succeed outgoing Angela Merkel as ChancellorAmerica imposes fresh sanctions on companies from China & UAE for doing business with Iran
 
Income tax raids IT SEZ developer; searches 16 premises in Chennai, Mumbai & Hyderabad

By TIOL News Service

NEW DELHI, NOV 30, 2020: THE Income Tax Department conducted searches on 27/11/2020 in the case of an IT SEZ developer, its ex-Director and a prominent stainless-steel supplier in Chennai. The search operation was carried out at 16 premises located in Chennai, Mumbai, Hyderabad and Cuddalore.

The evidences unearthed include unaccounted assets worth about Rs. 100 crore accumulated by the ex-Director and his family members in the past 3 years. The search further unearthed that the IT SEZ developer claimed bogus work-in-progress expenses of about Rs. 160 crore in an under-construction project. The entity had also claimed capital expenses of around Rs. 30 crore on account of bogus consultancy fees in an operational project and inadmissible interest expenses to the extent of Rs. 20 crore was also claimed by the entity.

The search further revealed certain share purchase transactions relating to the IT SEZ developer. The shares of this entity were sold by its erstwhile shareholders, a resident and a non-resident entity, which routed its investment through a Mauritius intermediary, for about Rs. 2300 crore in FY 2017-18 but capital gains out of this sale transaction were not disclosed to the department.

Investigation is in progress to determine the undisclosed capital gains in the hands of both the shareholders. Other land transactions involving cash payments and an issue relating to Compulsory Convertible Debentures are also under examination

The evidences found in the premises of the Stainless-steel supplier revealed that the supplier group has been conducting three sets of sales: accounted; unaccounted and partly-accounted. The unaccounted and partly-accounted sales amount to more than 25% of the total sales each year. Further, the assessee group has provided sales accommodation bills to various customers and received commission of more than 10% on these transactions. While the quantification of unaccounted income is being carried out currently, it is estimated to be around Rs. 100 crore. The related concerns of the assessee group are involved in financing, money lending and real estate development. The unaccounted transactions conducted by these entities and the unaccounted capital/loan infusion in these entities are estimated to be around Rs.50 crore.

The searches, so far, have resulted in the detection of undisclosed income of more than Rs. 450 crore.

Further investigations are in progress.


POST YOUR COMMENTS