According to the Central Board of Direct Taxes (CBDT), the Income Tax Department recently conducted searches in many states on two entities involved in digital marketing and trash management.
In recent raids on digital marketing and campaign management firms in numerous states, including Karnataka, the Income Tax Department discovered unaccounted investments of Rs 7 crore and fake expenses totaling over Rs 70 crore.
Incriminating evidence discovered suggests that the organisation has been using an entry operator to obtain accommodation entries. The entry operator admitted to facilitating cash and unaccounted income transfers for the gang via Hawala operators.
"Inflation of expenditure and under-reporting of revenue has also been detected. The group has also been found to be indulging in unaccounted cash payments. It is also found that personal expenses of the directors have been booked as business expenses in the books of accounts. Luxurious vehicles used by the directors and their family members are found to have been purchased in the names of employees and entry provider," the statement said.
The second group that was looked for is Solid Waste Management, which includes solid waste collection, transportation, processing, and disposal services throughout the country, primarily for Indian towns.
Various damning documents, loose papers, and digital evidence were discovered throughout the search. This group has been revealed to have booked fake bills for costs and sub-contracts, according to the evidence found. A preliminary estimate of the number of false costs claimed is Rs.70 crore.
The search resulted in the discovery of an unaccounted for property investment of almost Rs. 7 crore. Aside from that, the search operation led in the seizure of Rs. 1.95 crore in undeclared cash and Rs. 65 lakh in jewellery.