The Income Tax officials conducted raids on a major pharmaceutical group based in Hyderabad. The IT sleuths have found about Rs. 400 crore which doesn't have any records. The Central Board of Direct Taxes (CBDT) said on Monday that the pharmaceutical group has been involved in the business of manufacturing of intermediates, active pharmaceutical ingredients (APIs) and formulations. The majority of the products manufactured in the company are exported to European countries and the USA. The IT officials have conducted searches on February 20 at around 20 locations spread across five states.
The CBT released a statement that reads, "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 CBT also said that, "Incriminating evidence in the form of digital media, pen drives, documents, etc. have been found and seized." The digital evidence was gathered from SAP-ERP software. According to the reports, a total of Rs. 1.66 crore cash has been seized.
The CBT alleged that, "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." CBT didn't not release the name of the firm.