Quick Summary
The Income Tax Department carried out search and survey operations on a group based in Mumbai on 08.02.2021. This group is mainly engaged in the business of manufacturing of Gutkha, Pan masala and allied substances, besides having operations in hospitality sector. The searches were carried out across many locations in India and concluded on 13.02.2021. The search and seizure action has led to detection of foreign assets lying with a company registered in tax-haven British Virgin Islands (BVI)
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FAQ :
The group is mainly engaged in the manufacturing of Gutkha, Pan masala, and allied substances, and also has operations in the hospitality sector.
Foreign assets lying with a company registered in the British Virgin Islands (BVI), with an office in Dubai and controlled by the group's chairman, were detected. The net worth of this BVI company is Rs 830 crore.
The group availed bogus deductions under Section 80IC of the Income-tax Act, 1961, to the extent of Rs 398 crore and falsely claimed deductions under Section 10AA of the Income-tax Act, 1961, amounting to Rs 63 crore.
Yes, unaccounted production of pan masala amounting to Rs 247 crore was detected at two factory premises of the group.
Cash of Rs 13 lakh was seized, and jewellery amounting to Rs 7 crore was found and placed under prohibitory orders. Prohibitory orders were also placed on 16 lockers and 11 premises.
The search action has led to the detection of unaccounted transactions of around Rs 1500 crore so far, with further investigations in progress.
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