The Income Tax (I-T) Department has unearthed Rs 224 crore worth of undisclosed income after raiding premises of a ‘unicorn startup’ in Maharashtra’s Pune and Thane. The Central Board of Direct Taxes (CBDT) in a statement said the department conducted searches across 23 locations in Pune and Thane-based unicorn start-up group engaged in the business of wholesale and retail of construction material.
The CBDT spokesperson said the evidence revealed that the group has booked bogus purchases, made huge unaccounted cash expenditures and obtained accommodation entries, aggregating to over Rs 400 crores.
The group has an annual turnover of over Rs 6,000 crore and has a pan-India presence, the policy-making arm of the tax department said in a statement.
Unaccounted cash worth Rs 1 crore and jewellery worth Rs 22 lakh were also seized, the CBDT spokesperson added.
“These evidences were confronted to the directors of the group, who admitted under oath this modus operandi, disclosed additional income of more than Rs 224 crore in various assessment years, and consequently offered to pay their due tax liability,” CBDT claimed.
These shell companies exist on paper and were created only for the purpose of providing accommodation (bogus) entries. Preliminary analysis has revealed that the total quantum of accommodation entries provided by these shell entities exceeds Rs 1,500 crore, it added.
