The Income-Tax department has detected an undisclosed income of Rs 180 crore during searches at the premises of Pune-based housekeeping firm Bharat Vikas Group (BVG), CBDT officials said on Thursday. In another search in Pune region, the Department said it made an all-time high cash seizure of Rs 9.55 crore, after it raided a local businessman in connection with a tax evasion case.
“The search and seizure action has led to unearthing of incriminating evidence regarding bogus claim of brought-forward losses of Rs 91 crore pursuant to a scheme of de-merger which is not found in accordance with the provisions of I-T Act ... bogus expenses in the form of unsubstantiated purchases to the tune of Rs 77 crore have also been detected so far and further verification is in progress,” the Central Board of Direct Taxes (CBDT) said in a statement, without naming BVG.
It, however, said the group has diversified business activities and provides services in areas such as mechanised house-keeping, landscaping and gardening, civil and electrical maintenance, fabrication services, turnkey solutions and logistic support, and other services required by government agencies and municipal corporations. BVG is responsible for undertaking cleaning of railway coaches for the Indian Railways. It also maintains the facilities of the Rashtrapati Bhavan in New Delhi.
Evidence has also been found in respect of cash expenses to the tune of Rs 20 crore, CBDT said. “Further, unaccounted cash of Rs 60 lakh has been found. Several lockers have been found and put under restraint. Based on evidence unearthed so far, undisclosed income to the tune of Rs 180 crore, from assessment year 2016-17 onwards has been detected,” it said, adding that search proceedings are still underway.
The searches were carried out on Wednesday at over two dozen locations linked to the business group in Pune, Mumbai, Nagpur, Delhi, Bengaluru and Noida. BVG Group, started by its chairman and managing director Hanmantrao Gaikwad, had on Wednesday in a statement said that I-T officials conducted routine searches at the premises of the company.
In the second case, the Department said the assessees are in the business of construction, sub-contracting and real estate activities.