The Income Tax Department has detected "unaccounted" income of about Rs 400 crore after raids on a major pharmaceutical group based in Hyderabad, the Central Board of Direct Taxes (CBDT) said on Monday, reported PTI.
The searches were carried out on February 24 at around 20 locations spread across five states.
The CBDT said the pharmaceutical group is engaged in the business of manufacturing of intermediates, active pharmaceutical ingredients (APIs) and formulations, and a majority of its products are exported to European countries and the USA.
"The search has led to the unearthing of evidence relating to unaccounted income of around Rs 400 crore, out of which the assessee group has admitted an additional income of Rs 350 crore," the CBDT claimed in a statement.
It added that Rs 1.66 crore cash was also seized during the operation.
"Incriminating evidence in the form of digital media, pen drives, documents, etc. have been found and seized," the CBDT said.
The statement said digital evidence was gathered from SAP-ERP software.
"Issues relating to purchases made from bogus and non-existent entities, artificial inflation of certain heads of expenditure, along with suppression of receipts relating to by-product sale were detected.
"Evidence of on-money payment for the purchase of lands was also found," it alleged.
Multiple other legal issues were also identified such as personal expenses being booked in the company's books and land purchased by related concerns or individuals below government value, the CBDT said.
The Income Tax Department in the meantime has detected undisclosed income of about Rs 220 crore after it raided a leading tiles and sanitaryware manufacturer based in Chennai, the CBDT said on Sunday.
The action was carried out on February 26 and a total of 20 premises in Tamil Nadu, Gujarat and Kolkata were searched and surveyed, it said.
The CBDT said in a statement that Rs 8.30 crore cash was seized during the raids on the group engaged in the business of manufacture and sale of tiles and sanitaryware. The group is the “leader” in tiles business in south India.
The names of these firms have not been released to the media.