The Central Board of Direct Taxes (CBDT) on Saturday claimed to have unearthed “fictitious transactions” value Rs 2,200 crore carried out by the Income Tax Department. Raids in lots of cities Against Dainik Bhaskar Media Group earlier this week.
It stated that on July 22, the search operation is happening in 9 cities particularly Bhopal, Indore, Delhi, Ahmedabad, Noida and few others and additional investigation is on.
“The heavy material found during the search operation is being investigated,” the CBDT stated in a press release issued right here. CBDT formulates coverage for the IT division.
Although the assertion didn’t identify the group, official sources recognized it because the Bhopal-headquartered Dainik Bhaskar Group, which is concerned in numerous enterprise sectors similar to media, energy, textiles and actual property, with a conglomerate value over Rs 6,000 crore yearly. conducts enterprise.
“Transfer of funds amounting to Rs 2,200 crore has been discovered between group corporations engaged in cyclical buying and selling and unrelated companies.
“The inquiry has confirmed that these are fictitious transactions without any actual movement or delivery of goods. The tax implications and violations of other laws are being investigated,” the assertion alleged.
On the day of the raid, the media group posted a message on its web site saying that the federal government is frightened of its true journalism.
From useless our bodies within the Ganges river to corona deaths, the group that introduced the actual numbers to the fore is being raided by the federal government, it has been alleged in a message in Hindi.
“I am free because I am Bhaskar, in Bhaskar only the readers are important,” it stated.
The CBDT assertion alleged that the group has greater than 100 corporations together with holding and subsidiaries and is working a number of corporations within the identify of their workers that are used for “fake” reserving of bills and routing of funds. has gone.
The authorities is raiding the group that introduced the actual numbers from useless our bodies to corona deaths within the Ganges river to the nation, the group alleged in a message in Hindi. Human corpses float on the floor of the Ganges in Buxar district of Bihar. (Photo Credits: Amar Nath Tiwari/Unexplored Adventure)
“During the search, a number of workers, whose names had been used as shareholders and administrators, admitted that they weren’t conscious of such corporations and had given their Aadhaar playing cards and digital signatures to the employer in good religion.
The CBDT claimed, “Certain relatives were found who had voluntarily and knowingly signed the papers, but had no knowledge or control of the business activities of the companies in which they were assumed to be directors and shareholders.”
It is alleged that such corporations have been used for numerous functions similar to “booking of bogus expenses” and “grabbing” income of listed corporations, switch of funds to their shut corporations for making investments, making round transactions. Etcetera.
“The nature of such fictitious bills varies from manpower provide, transportation, logistics and civil works and notional enterprise dues.
It claimed, “The quantum of income escaping by using this modus operandi, which has been detected so far, is Rs 700 crore over a period of six years.”
However, the amount may very well be greater because the group has used a number of layers and investigations are underway to uncover all the cash mark.
The tax division is probing the violation of sure sections of the Companies Act prescribed by SEBI for listed corporations and clause 49 of the itemizing settlement on this case, the assertion stated.
“The application of Benami Transactions Prohibition Act will also be examined,” it stated. The CBDT stated the group’s actual property arm is working a mall and has been sanctioned a mortgage of Rs 597 crore from a nationalized financial institution.
Out of this, an quantity of Rs 408 crore has been given to a sister concern within the type of mortgage at low rate of interest of 1 p.c.
“While the real estate company is claiming interest expense from its taxable profit, it has been diverted to the individual investment of the holding company,” it alleged.
The listed media firm conducts “barter deals” for promoting income, whereby actual property is obtained instead of precise cost, it stated.
“Evidence indicating cash receipts in respect of sale of such properties has been found. It is under further investigation,” the assertion stated.
The CBDT stated the “evidence” discovered in the course of the raids indicated receipt of cash in money on sale of flats by the realty arm of the group.
“This has been confirmed by two employees and a director of the company.”
“The modus operandi as well as the corroborating documents have been received. The exact quantum of out-of-book cash receipts is being determined,” it stated.
The tax authorities discovered a complete of 26 lockers within the residential premises of the promoters and key workers of the group, that are being operated.
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With inputs from TheIndianEXPRESS
