New Delhi: The Income Tax department has conducted searches against a Chennai-based IT infrastructure group and discovered evidence related to investments in a Singapore-registered company. The raids were carried out at 5 locations in Chennai and Madurai on Wednesday.
The search has led to the detection of unaccounted income of around Rs 1000 crore, of which the appraiser has already revealed additional income of Rs 337 crore, in addition to actionable issues under Benami and Black Money laws.
The shareholding of this IT company is held by two companies, one owned by the target group, while the other is a subsidiary of a major infrastructure development and financing group. It has been found that the company belonging to the target group has invested a very nominal amount although it has a 72 percent stake, while the other company with a 28 percent stake has only invested almost all of the money, according to the department of YOU.
On live Tv
This has resulted in a profit / gain of around Rs 200 million held by the company belonging to the target group, which was not disclosed by it in its income statement and also in the FA Program. The suppression of foreign income received in the form of subscription of shares equivalent to 200 million rupees, which is subject to tax in India in the hands of the shareholder, was verified by TI detectives.
Additionally, proceedings will be initiated under the Black Money Act of 2015 for not disclosing foreign assets / beneficial interest on Schedule FA of income tax return. The present value of this investment exceeds Rs 354 million.
During the search, the IT department found that the group had recently acquired 5 shell companies, which were used to divert up to Rs 337 million from the main group company by increasing false invoices and without doing any real business in these companies. .
The diverted money was transferred abroad and used to purchase shares in the name of the son of the lead appraiser. One of the directors admitted that they have diverted funds through these companies.
Evidence has also been found regarding the allocation of preferred shares worth Rs 150 crore in 2009 in the group company by passing only accounting entries, to project inflated capital to banks and financial institutions to obtain finance. The allocation of other preferred shares worth Rs 150 million in 2015 from funds of group companies, which in turn borrowed / inflows, is under consideration.
During the search, it was also found that the group had borrowed funds from banks with interest and diverted them to other companies in the group without interest for property investments. The total rejection of interest on this count is estimated at approximately Rs 423 crore.
Furthermore, the search also revealed that the group had purchased around 800 acres of land worth at least Rs 500 million, in the name of various shell companies, with funds provided by the group’s main company. The applicability of the Benami Property Transactions Prohibition Act of 1988 to these transactions is under review.
It was also seen that there was a transfer of substantial holdings during the current year at a price much lower than the fair market value to be determined under the 1962 TI Rules.
In light of this, it is likely that substantial additions will be made under section 56 (2) (x) of the IT Act of 1961 (the Act) in the case of buyer and capital gains under section 50CA of the Act. , in the hands of the seller. The amount of this will be determined in due course. Meanwhile, more investigations are underway.
.
