The Income Tax department on Saturday said actor Sonu Sood and his associates had evaded tax worth over ₹20 crore. The tax department said Sood's non-profit also raised ₹ 2.1 crore from overseas donors using a crowdfunding platform in violation of the law - Foreign Contribution (Regulation) Act - that governs such transactions. "During the course of search at the premises of the actor and his associates, incriminating evidences pertaining to tax evasion have been found. The main modus operandi followed by the actor had been to route his unaccounted income in the form of bogus unsecured loans from many bogus entities," the tax department said in the statement.
"Investigations so far have revealed use of 20 such entries, the providers of which, on examination, have accepted on oath to have given bogus accommodation entries. They have accepted to have issued cheques in lieu of cash. There have been instances where professional receipts have been camouflaged as loans in the books of accounts for the purpose of evasion of tax. It has also been revealed that these bogus loans have been used for making investments and acquiring properties. The total amount of tax evaded unearthed so far, amounts to more than ₹ 20 crore," the tax department said. According to the allegations against the actor, whose philanthropic efforts for those affected by the COVID-19 pandemic have earned huge praise, his non-profit Sood Charity Foundation set up in July last year during the Covid first wave collected donations of over ₹ 18 crore till April this year, out of which ₹ 1.9 crore has been spent on relief work and the balance ₹ 17 crore has been lying unused in the non-profit's bank account.
A recent deal between Sonu Sood's company and a Lucknow-based real estate firm is under the scanner", and the survey operation began on allegations of tax evasion on this deal. It alleged the Lucknow group is involved in bogus billing of subcontracting expenses and diverting funds. "Evidences of such bogus contracts found so far are to the tune of over ₹ 65 crore. Further investigations are being carried out to establish the full extent of tax evasion. Cash of ₹ 1.8 crore has been seized during the course of the search," the tax department said.