Tax evasion worth Rs 12 cr unearthed in Karol Bagh

The department carried out a search on Tuesday at registered premises of suspected dealers at Karol Bagh. Registers and cash memos of suspected transactions were seized.

A senior official of the department said that nine such firms were identified which were suspected to be owned by the same set of persons with a combined gross turnover of approximately Rs 235 crore and estimated tax liability of around Rs 12 crore but paying negligible or nil tax to the government.

During the survey, it was revealed that these firms were importing mobiles and their accessories, but to evade tax they were showing local purchase from bogus/suspicious dealers with the intention to claim input tax credit.

“The documents of 33 firms, such as cheque books, letterheads, cash memos were found at the premise of one firm only, which is indicative that same set of people are suspected to be operating various firms,” official said.

Government said that the extent of evasion can be seen from the fact that unaccounted cash to the tune of Rs 1.64 crore was found from the premises, which prima facie appears to be the proceeds of one day sale of the dealer, while the overall turnover of the company as declared in last year’s return was Rs 14 lakh only.

The official added that a cash counting machine was also found in the office of the firm, which is 

indicative of huge daily transaction.