Income Tax Department detects Rs.550 cr hidden income after raids on Hyderabad based pharma group
The Income Tax Department recently carried out ‘search and seizure’ operations on a major pharmaceutical group based in Hyderabad and seized about Rs.143 crore in cash besides detecting unaccounted income to the tune of Rs.550 crore.
According to the Ministry of Finance, the operations were carried out on October 6 across 50 locations in six states.
The Finance Ministry said in a statement that this pharmaceutical group is engaged in the business of manufacturing intermediates and Active Pharmaceutical Ingredients (APIs) and formulations. The majority of the products are exported to foreign countries like the US, Europe, Dubai, and other African countries.
The ministry said that during the searches, hideouts were identified, where the second set of books of accounts and cash were found.
The statement further said, “Incriminating evidence in the form of digital content, pen drives, documents, etc. have been found and seized. Incriminating digital evidence was gathered from the ‘SAP @ ERP‘ software maintained by the assessee group”
During the searches, issues relating to discrepancies in purchases made from bogus and non-existent entities and artificial inflation of certain heads of expenditure were detected
Besides, evidence of on-money payment for the purchase of lands was also found.
“Various other legal issues were also identified such as personal expenses being booked in the company’s books and land purchased by related parties below government registration value,” said the ministry.
The ministry cited that during the search, several bank lockers were found, out of which 16 have been operative.
The searches have also resulted in the seizure of unexplained cash amounting to Rs.142.87 crore. The unaccounted income unearthed is estimated to be in the range of about Rs.550 crore till now.
Further investigation and quantification of undisclosed income detected are in progress.
[With Inputs from IANS]
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