NEW DELHI: In an oblique reference to its searches conducted at the offices of media houses Dainik Bhaskar and Bharat Samachar, Income Tax Department has alleged tax evasion of Rs 900 crore was discovered during the search operation on Thursday.
In two separate statements issued on Saturday, although no names were mentioned, there were hints to suggest the IT department searches in the office of Dainik Bhaskar and Bharat Samachar, which attracted huge criticism. These two media houses in their reporting were critical of the way the government had handled the second wave of Covid-19.
“The quantum of income escapement using this modus operandi, detected so far, amounts to Rs 700 crore spread over a period of 6 years. However, the quantum may be more as the group has used multiple layers and investigations are being carried out to unravel the entire money trail,” the department said, in a first statement.
The statement mentioned searches at 20 residential and 12 business premises spread over 9 cities including Mumbai, Delhi, Bhopal, Indore, Noida, and Ahmedabad.
“The listed media company does barter deals for advertisement revenues, whereby immovable properties are received in lieu of actual payments. Shreds of evidence have been found indicating cash receipts in respect of the subsequent sale of such properties. This is under further examination,” the IT department said, without taking names.
It is to be mentioned here that DB Corp, a listed company, owns Dainik Bhaskar.
The tax department also said that it detected cyclical trading and transfer of funds among group companies engaged in unrelated businesses to the tune of Rs. 2,200 crore has been found.
In a separate statement, it said that it conducted a search operation on July 22 on a group in Uttar Pradesh dealing in Mining, Hospitality, News Media, Liquor, and Real Estate.
Confirming the search in Lucknow, Basti, Varanasi, Jaunpur, and Kolkata, office, it claimed that “Cash of more than Rs 3 crore has been seized and 16 lockers have been placed under restraint”.
“Documents including incriminating digital evidence indicating nearly Rs 200 crore of unaccounted transactions have been seized,” the department said in a statement.
It has also accused the company of money laundering and tax evasion.
“Evidence found during searches establishes that the group has been earning huge outside-the-books income through mining, processing, and sales in liquor, flour business, real estate, etc. Unaccounted income emanating out of these transactions has been found exceeding Rs. 90 crore as per preliminary estimates.
“This income has been brought back into the books through a network of shell companies and other bogus entities without paying any taxes, thereby creating a charade that the money has been accounted for,” the statement said.