The Revenue Tax Division has performed searches on an organization engaged in buying and selling of telecom gear and set up and servicing of this stuff for varied telecom gamers in India. The I-T searches had been performed at 5 premises, together with the company workplace, the residence of the overseas director, the residence of firm secretary, accounts particular person and the money handler of an overseas subsidiary firm in India.
The search revealed that the purchases of the assessee firm had been solely from its holding firm. In response to an announcement issued by the CBDT, examination of import payments vis-à-vis sale payments presents that there’s enormous gross revenue (roughly 30%) on buying and selling of this stuff, nevertheless, the corporate has been reserving enormous losses over time.
It’s thus evident that losses are being booked by the corporate by way of bogus bills in respect of providers offered by it, the CBDT mentioned.
“Few such recipients have been recognized in whose case, substantial bills have been booked over time. These entities have been discovered to be non-existent at their addresses. Furthermore, the mentioned entities additionally don’t file their Revenue Tax Returns(ITRs). Extra such doubtful entities are being examined. It’s anticipated that bogus bills would run into a whole bunch of crores over time,” the CBDT mentioned.
Additionally, it claimed that “incriminating proof” has been detected in Whatsapp chats of the CEO, CFO, and different key individuals indicating unlawful funds to telecom firms.
Whatsapp chats additionally reveal the cost of the fee to an individual based mostly in Australia for buy of shares of a telecom firm in India, it mentioned, including that these transactions are being examined additional.
“Proof within the type of digital knowledge and bodily papers, discovered throughout the course of the search exhibits that unaccounted cash, operating into a number of crores yearly, has been introduced again into the books within the type of bogus scrap gross sales, and so on. Incriminating paperwork discovered from the digital knowledge of key individuals, together with the overseas CFO, present that the staff of the corporate had been engaged in unlawful forex alternate from Rupee to RMB. *They had been additionally discovered to be engaged in massive-scale unlawful commerce of medicines from India to China,” the CBDT mentioned.
“Examination of books of the assessee firm exhibits massive discrepancies. It has been discovered that the corporate has did not deduct TDS on provisions made by them for bills. Throughout F.Y.s 2014-15 and 2015-16 the corporate did not deduct TDS on such provisions amounting to greater than Rs. 120 crore,” it mentioned.
CBDT mentioned the corporate has claimed bills of greater than Rs. 100 crore on account of provisions created by it for uncertain money owed in F.Y. 2017-18.
“Equally, bills of a whole bunch of crores have been claimed overtime on account of provision for uncertain money owed and provision for uncertain loans and advances. Admissibility of such bills is being examined, it added.
Additionally, the assessee firm has additionally declared solely 2 financial institution accounts in its Revenue Tax Returns(ITRs) regardless of having around 12 operative financial institution accounts. Accountability of transactions in different financial institution accounts is being examined, it mentioned.
“Challenge of tax legal responsibility of a whole bunch of crores has been recognized thus far. Unaccounted money of greater than Rs. 62 lakh has been discovered on the premises. 3 lockers have additionally been discovered throughout the course of the search, which has been positioned beneath restraint. Search operation continues to be persevering with,” the assertion mentioned.