Foreign investments

Foreign investments of a group of companies specializing in the hotel and real estate sector under computer scanner

Mumbai: Foreign investments of a group of companies in the hotel and real estate sector under computer scanner |

The Income Tax (IT) Department recently carried out a search and seizure operation on a Delhi and Mumbai based group engaged in hospitality, marble, light trading and real estate. A total of 18 premises in Delhi, Mumbai and Daman were covered during the research action.

A preliminary investigation by the IT department indicated that the group may have parked its undisclosed money offshore in certain low-tax jurisdictions. The group, through a network of companies based in Malaysia, invested the funds in its hotel business in India. The amount of these funds is estimated to exceed Rs 40 crore, according to the agency. The agency did not name the group against which the action was taken, as the investigation is ongoing.

According to IT officials, during the search operation, a large amount of incriminating evidence in the form of paper documents and digital data was found and seized. The elements collected indicate that the group has invested in a few companies abroad, set up especially for the trading of raw materials. The net worth of one of these companies, including its realized profits, was not disclosed by the group in its IPRs for the relevant period.

“Furthermore, it has been detected that the promoter of the group has invested in real estate located in a foreign jurisdiction which was also not disclosed in his tax return. Additionally, some offshore entities, set up for trading raw materials, have been identified. , which have also not been declared. The search action also revealed that the group was involved in off-book cash sales in its operations in India. In its marble and lights business, the evidence seized points to unrecorded cash sales to the extent of 50% to 70% of total sales Undisclosed excess stock of Rs.30 crore was also found In its hotel business, unaccounted sales have been detected more specifically in the banqueting division. undeclared jewelry worth Rs. 2.5 crore was seized,” an IT official said.

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