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Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
PRESS RELEASE
Income Tax Department conducts searches in a major Telecom Group
The Income Tax Department conducted search & seizure operations on a multinational group, engaged in distribution of telecom products and providing captive software development services, on 15.02.2022. The ultimate shareholding of the group lies with a foreign entity of a neighbouring country. The searches, which were spread across Delhi, Gurugram and Bengaluru covered the main business premises and also the residential premises of the key office bearers.
The search action has revealed that the group has made inflated payments against receipt of technical services from its related parties outside India. The assessee company could not justify the genuineness of obtaining of such alleged technical services in lieu of which payment has been made as also the basis of determination of consideration for the same. The expenses debited by the assessee company towards receipt of such services are to the tune of Rs. 129 crore over a period of five years.
During the search, it was found that, the assessee group has debited more than Rs.350 crore in its books of account in recent financial years towards royalty to its related party. Such expenses have been incurred for the use of brand and technical know-how related intangibles. During the search, the group has failed to substantiate receipt of any such services/technical know-how, or the basis of quantification of royalty rate for such claim. Consequently, the rendering of services and such royalty payments become highly questionable and prima facie, disallowable as business expenses as per extant Income Tax law.
Evidences gathered and statements recorded during the search also reveal that one of the group entities engaged in providing software development services, has been disclosing lower net margins from the related parties, by claiming its operation to be of low-end nature. However, the evidences collected during the investigation indicated that this entity has been rendering significant services/operations of high-end nature. On this aspect, suppression of income of Rs. 400 crore has been detected.
The search action has further revealed that the group has manipulated its books of account to reduce its taxable income in India through creation of various provisions for expenses, such as provisions for obsolescence, provisions for warranty, doubtful debts/ loans & advances etc., which have little or no scientific/financial rationale. During the investigation, the group has failed to provide any substantial and appropriate justification for such claims.
Further investigations are in progress.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 24th February, 2022
PRESS RELEASE
Income Tax Department conducts searches on a group engaged in organizing multi-state gaming activities, online betting, etc.
The Income Tax Department conducted search and seizure operations on a business group engaged in gaming activity, online betting (including cricket betting), etc. on 15.02.2022. Total of 29 premises spread over Mumbai, Delhi, Surat, Jaipur,
Pune and Kolkata were covered. The search action revealed that the group was operating in a clandestine manner and had concealed its operations and income from law enforcement agencies. The revenue generated by the group from its activities is largely in cash.
The group operates from Mumbai and has a wide network of agents and area managers in different cities for collection of cash from large customer base who use the websites hosted on cloud servers by private operators. It was detected during the search that, after allotting IDs and passwords to the customers, points are credited into their accounts by agents/area managers after collecting cash from them. The cash is then sent to Mumbai through hawala operators. Handwritten notes, documents and digital evidence containing detailed account of daily cash transactions to be introduced in the books of account have been seized during the search.
The search revealed that the group has been introducing its unaccounted cash into books of account as unsecured loans, security premium, partner’s capital, agricultural income, share transactions, commission and trading income, etc., in the form of accommodation entries. This cash has been routed through several layers of dummy/shell companies controlled by the entry provider groups or through hawala channels. The amounts introduced in the books of account have been invested in real estate and securities market. Preliminary investigation has revealed cash turnover of more than Rs. 600 crore in the last 6 months or so.
Listed securities worth more than Rs. 550 crore and 30 bank accounts have been provisionally attached so far. Cash (including foreign currency) of Rs. 3.08 crore and jewellery worth Rs. 81 lakh has been seized.
Further investigations are in progress.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 16th February, 2022
PRESS RELEASE
More than 29.8 lakh major Tax Audit Reports(TARs) filed on the e-Filing portal of the Income Tax Department
More than 29.8 lakh major Tax Audit Reports(TARs) have been filed on the e-Filing portal of the Income Tax Department as on 15th February, 2022. On the last day, over 4.14 lakh major Tax Audit Reports/forms have been filed.
Out of 29.8 lakh of the major statutory forms, over 2.65 lakh Form 3CA-3CD and around 24.5 lakh Form 3CB-3CD have been filed in FY 21-22. More than 2.71 lakh other Tax Audit Reports (Form 10B, 29B, 29C, 3CEB, 10CCB, 10 BB) have been filed till 15.02.2022.
On 15.02.2022, 34,842 Form 3CA-3CD(out of total of 2,65,153), 3,36,842 Form 3CB-3CD (out of total of 24,48,950), 18,644 Form 10B (out of total of 1,50,950), 11,852 Form 29B (out of total of 74,923), 478 Form 29C (out of total of 2,820), 10,542 Form 3CEB (out of total of 33,345), 873 of Form 10CCB (out of total of 4,904) and 570 of Form 10BB (out of total of 3851) have been filed. On the last date i.e. the extended due date of 15.02.2022, 14% of these statutory forms and in the last 5 days from 11.02.2022 to 15.02.2022, 30% of these statutory forms were filed.
Further, more than 5.41 crore Income Tax Returns(ITRs) filed have been verified out of 6.26 crore ITRs filed for AY 2021-22. Of the verified ITRs, more than 4.50 crore ITRs have been processed and 1.58 crore refunds for AY 2021-22 have
been issued.
The Department expresses gratitude to all tax professionals and taxpayers for the support in compliances and requests the attention of taxpayers who are yet to accept the Tax Audit Report submitted by their CA to complete the process of submission.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 7th February, 2022
PRESS RELEASE
Around 6.17 crore Income Tax Returns(ITRs) and about 19 lakh major Tax Audit Reports(TARs) filed on the new e-Filing portal of the Income Tax Department
Around 6.17 crore Income Tax Returns(ITRs) and about 19 lakh major Tax Audit Reports(TARs) have been filed on the new e-Filing portal of the Income Tax Department as on 6th February, 2022.
Out of 6.17 crore ITRs filed for AY 2021-22, 48% of these are ITR-1 (2.97 crore), 9% is ITR-2 (56 lakh), 13% is ITR-3 (81.6 lakh), 27% are ITR-4 (1.65 crore), ITR-5 (10.9 lakh), ITR-6 (4.84 lakh) and ITR-7 (1.32 lakh). Over 1.73 lakh Form 3CA-3CD and 15.62 lakh Form 3CB-3CD have been filed in FY 21-22. More than 1.61 lakh other Tax Audit Reports (Form 10B, 29B, 29C, 3CEB, 10CCB, 10 BB) have been filed till 06.02.2022.
The Department has been issuing reminders to taxpayers through emails, SMS and Twitter encouraging taxpayers and Chartered Accountants not to wait till the last minute and file their TARs/ITRs without further delay. Further, to assist the filers for resolution of any grievance related to e-filing, two new email ids-TAR.helpdesk@incometax.gov.in and ITR.helpdesk@incometax.gov.in have been provided. All taxpayers/tax professionals who are yet to file their Tax Audit Reports or Income Tax Returns for AY 2021-22 are requested to file their TARs/Returns immediately to avoid last minute rush.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Ministry of Finance
More than 43.34 crore Permanent Account Numbers (PANs) linked with Aadhaar till 24.01.2022
Dated: 07 FEB 2022
As on 24-01-2022, the total number of Permanent Account Numbers (PANs) linked with Aadhaar is 43,34,75,209. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha today.
The Minister further stated that the time-limit as extended by the Government for linking all PAN cards with Aadhaar cards is 31-03-2022.
Speaking on the difficulties involved, the Minister stated that there could be different reasons for difficulties in linking PAN card with Aadhaar card faced by the taxpayers. These inter alia may be on account of mismatch between PAN and Aadhaar details in respect of information regarding name, date/year of birth, mobile number for receipt of OTP for linking of PAN, etc. If the mismatch is on account of Aadhaar Card details, the taxpayer may get the Aadhaar details corrected by concerned authority. Wherever the mismatch or difficulty regarding PAN card itself is brought to notice, action is taken and resolution is provided to the taxpayer, the Minister stated.
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RM/KMN
(Release ID: 1796312)