Income Tax department detects undisclosed foreign assets, funds after raids on Delhi-Mumbai based group

The CBDT alleged the group was involved in "out-of-books cash sales" in its domestic operations.

The Board said in the hospitality business, unaccounted sales have been detected, more specifically, in banquet division. Pic: https://twitter.com/IncomeTaxIndia

The Income-tax department has found that a Delhi and Mumbai based business group-engaged in hospitality, marble selling and real estate-and its promoters allegedly "parked" black money abroad and created undisclosed offshore assets.

The CBDT, the administrative body for the department, issued a statement on Friday stating that it has seized Rs 2.5 crore of "undeclared" jewellery from the group, that has not been identified.

The raids on the group, that also deals in lights trading, were launched on July 7 and a total of 17 premises in Delhi, Mumbai and Daman were covered, it said in a statement.

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Documents seized "indicate that the group has parked its undisclosed money abroad in certain low tax jurisdictions."

"The group, through Malaysia-based web of companies, has finally invested the funds in its hospitality business in India and it is estimated that the quantum of such funds exceeds Rs 40 crore," the CBDT said.

The group has invested in a few companies abroad, which have been incorporated specially for commodity trading, it said.

The net-worth of one such company including its profits earned has not been disclosed by the group in its ITRs (income tax returns) for the relevant period, the statement alleged.

"Further, it has been detected that the promoter of the group has invested in an immovable property in foreign jurisdiction which has also not been disclosed in his ITR," the CBDT said.

Certain offshore entities, it said, set up for commodity trading, have been identified, which have also "not been declared."

The CBDT alleged the group was involved in "out-of-books cash sales" in its domestic operations.

"In its trading business of marble and lights, seized evidences indicate unaccounted cash sales to the extent of 50-70 per cent of the total sales.

"Undisclosed excess stock of Rs 30 crore has also been found," the statement said.

The Board said in the hospitality business, unaccounted sales have been detected, more specifically, in banquet division.

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