Tax department finds Rs 400Cr black income after raid on Hyderabad-based pharma group
By TIOL News Service
NEW DELHI, MAR 01, 2021: INCOME tax officials on Monday said their search and seizure operations on a major Hyderabad-based pharmaceutical group had revealed unaccounted income of around Rs. 400 crore.
The pharmaceutical group is engaged in the business of manufacturing of intermediates, Active Pharmaceutical Ingredients (APIs) and formulations, with the majority of its products for export purposes.
The Income Tax Department had carried out raids on February 24 on 20 of the group's laboratories, offices and subsidiary businesses across five States.
"The search has led to unearthing of evidence relating to unaccounted income of around Rs. 400 crore out of which the assessee group has admitted an additional income of Rs. 350 crore," said the officials.
Cash amounting to Rs. 1.66 crore was seized along with incriminating evidence in the form of digital media, pen drives and documents.
During these searches, issues relating to purchases made from bogus and non-existent entities, artificial inflation of certain heads of expenditure, alongwith suppression of receipts relating to by-product sale were detected.
Further, evidence of on-money payment for purchase of lands was also found. Multiple other legal issues were also identified such as personal expenses being booked in the company's books and land purchased below government value.
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