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ITD conducts search on business groups in Mumbai

Posted on 18 November 2019

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

New Delhi, 14th November, 2019

Income Tax Department conducts search on prominent business groups in Mumbai

The Income Tax Department conducted search action in Mumbai and Surat on 06.11.2019 on entry providers and beneficiaries who have been engaged in execution of civil contracts mainly in Brihanmumbai Municipal Corporation (BMC). A total of 37premises were covered under search action and 7 premises were covered under survey. There were reports that certain contractors had taken entries in the form of loans, etc. from entry providers and also inflated expenses in the books of accounts to
suppress income.

Incriminating evidences showing large scale tax evasion and money laundering have been found. It has also led to the detection of the use of bogus companies (floated by entry providers) for giving entries to businesses in the form of loans or bills for expenses, etc. In the case of the entry providers, systematic modus operandi of bank fraud and forgery has been detected whereby the promoters have made investments in immovable properties and shares of group companies by siphoning off the bank loans. In the case of the contractor groups, several instances about inflation of expenses by bogus purchases/sub-contracts and taking of loans from entry providers have been identified.

So far, detection on account of above mentioned issues is to the tune of Rs.735 crore and extent of accommodation entries is being quantified. Investigations are in progress, including identification of the remaining beneficiaries.

(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT.







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