Income Tax raid on Pharma groups unearths unaccounted income of Rs 550 Cr
Income Tax raid on Pharma groups unearths unaccounted income of Rs 550 Cr
1. The Income Tax Department on Saturday said it unearthed unaccounted income worth Rs 550 crore during raids on premises belonging to a Hyderabad-based pharmaceutical company.
2. The search operation was carried out at about 50 locations spanning six states. During the searches, hideouts were identified where second set of books of accounts and cash were found.
3. Incriminating evidence in the form of digital media, pen drives, documents, etc. have been found and seized. Incriminating digital evidences were gathered from SAP@ERP software maintained by the assessee group.
4. During these searches, issues relating to discrepancies in purchases made from bogus and non-existent entities and artificial inflation of certain heads of expenditure were detected.
5. Further, evidence of on-money payment for purchase of lands was also found. Various other legal issues were also identified such as personal expenses being booked in the company’s books and land purchased by related parties below government registration value.
6. The searches have resulted in seizure of unexplained cash amounting to Rs. 142.87 crore so far.
7. The group is engaged in the business of manufacturing of intermediates, active pharmaceutical ingredients (APIs) and formulations and majority of the products are exported to countries like the US and Dubai, and some African and European countries.
