I-T department conducts searches on groups engaged in digital marketing, waste management

The Income Tax Department recently conducted searches on two groups engaged in digital marketing and waste management in multiple states, according to a statement from the Central Board of Direct Taxes (CBDT) on Sunday.
According to an official release, the Income Tax (I-T) department initiated search and seizure operations in two groups involved in the business of digital marketing and waste management in several states on October 12.
“The first group is engaged in digital marketing and campaign management wherein the search operations have been carried out at seven premises located in Bengaluru, Surat, Chandigarh, and Mohali,” the release said.
According to the CBDT, incriminating evidence found reveals that the group has been engaged in obtaining accommodation entries using an entry operator. The entry operator has admitted to facilitating the transfer of cash and unaccounted income of the group through Hawala operators.
“Inflation of expenditure and under-reporting of revenue has also been detected. The group has also been found indulging in unaccounted cash payments. It is also found that the personal expenses of the directors have been booked as business expenses in the books of accounts. Luxurious vehicles used by the directors and their family members are found to have been purchased in the names of employees and entry providers,” said the CBDT statement.

As per the release, the second group searched is engaged in solid waste management comprising solid waste collection, transportation, processing, and disposal services across the country, primarily serving Indian municipalities.
“During the course of the search, various incriminating documents, loose papers, and digital evidence have been seized. Evidence found reveals that this group has indulged in the booking of bogus bills for expenses and sub-contracts. A preliminary estimate of such bogus expenses booked is around Rs 70 crore,” said the CBDT.

The search action has led to the detection of unaccounted investment in property worth about Rs 7 crore. Besides, the search action has resulted in the seizure of unaccounted cash amounting to Rs 1.95 crore and jewelry worth Rs 65 lakh.
Further investigations are currently underway for both groups.