I-T dept seizes ‘black’ assets of over Rs 9 Cr after raids on MP mining, liquor group

New Delhi: Income Tax Department seizes “undeclared assets” worth more than Rs 9 crore from MP based business group engaged in mining and manufacture of liquor

BY | Wednesday, 10 August, 2022

The Income Tax Department has seized “undeclared assets” worth more than Rs 9 crore after it recently raided a Madhya Pradesh-based business group engaged in mining and manufacture of liquor, the CBDT said on Wednesday.

The raids were launched on July 14 on the premises of the group located in the state and some in Mumbai.

The CBDT statement said analysis of seized data of sand mining business shows that the group has been “indulging in tax evasion by not recording sales in the regular books of account”.

“The comparison of actual sales as per digital evidence vis-a-vis accounted sales of contemporary months clearly exhibits regular large-scale suppression of sales exceeding Rs 70 crore.” it said.

The Central Board of Direct Taxes, which frames policy for the I-T department, did not name the group searched, but added that the “key person” of the group occupies a political position.

The department also detected “non-payment of royalty on unaccounted sales”.

“A sum of more than Rs 10 crore has been found to be paid in cash by the group to other business associates, which is outside the regular books of account.” it alleged.

In the case of the sugar manufacturing business, issues pertaining to stock difference have been detected, it said.

“Some benamidars (in whose name a benami property is standing) have been made partners in a firm doing the sand mining business and were also found to be declaring profits in their income tax returns.

“However, the money was actually being transferred by them to the beneficial owner of the group.” the statement said.

During the search, one such benamidar, in his statement, admitted to being merely a salaried employee, having neither any knowledge of the affairs of the business nor having received any profits from such business, it said.

“So far, the search action has led to seizure of undeclared assets exceeding Rs 9 crore,” it said.


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