The Income Tax Department raided the premises of the Chairman of Hotel Royal Plaza Ashok Mittal for allegedly stashing income of Rs 40 crore on foreign shores.
"Foreign Asset Investigation Units (FAIUs) of Income Tax department has conducted this search for undisclosed assets held by Mittal abroad and possessing black money in foreign shores," the I-T officials toldadding that "in this regard 18 premises across Delhi, Mumbai and Daman were covered during the search operation."
A search was conducted this month including the locations of Hotel Royal Plaza, Lights Trading, and the real estate business.
According to the Central Board of Direct Taxes (CBDT), during the course of the search operation, a large amount of incriminating evidence in the form of hard copy documents and digital data were found and seized. The evidence indicated that the group had parked its undisclosed money abroad in certain low-tax jurisdictions. The group, through a Malaysia-based web of companies, had invested the funds in its hospitality business in India.
It is estimated that the quantum of such funds exceeds Rs 40 crore. The evidence gathered indicates that the group has invested in a few companies abroad, which have been incorporated especially for commodity trading, the CBDT informed.
The net worth of one such company including its profits was not disclosed by the group in its Income Tax returns for a relevant period. It was further detected that the promoter of the group has invested in immovable property in a foreign jurisdiction which has also not been disclosed in the Income tax returns. Besides these, certain offshore entities that were set up for commodity trading, have been identified but were not declared by the company.
As per the CBDT, the search action also revealed that the group was involved in the out-of-books cash sales in its India operations.
In its trading business of marble and lights, the seized evidence indicates the unaccounted cash sales to the extent of 50 per cent to 70 per cent of the total sales. Undisclosed excess stock of Rs 30 crore was also found during the search.
In its hospitality business, unaccounted sales have been detected more specifically in the banquet division, the CBDT added.
( With inputs from ANI )
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