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New Delhi : The Income-Tax ( I-T) Department initiated search action on November 24, 2021, on a taxpayer in Delhi who has created a beneficiary trust and an underlying company in low tax overseas jurisdiction. The residence and business premises of the assessee were covered in the search action.

The search operation revealed that the undisclosed entities in low tax overseas jurisdictions were holding assets worth Rs 40 cror in the form of immovable and movable assets. The taxpayer was availing handling services of a foreign Bank having branches in India that offers wealth management, financial planning, asset allocation, equity research, fixed income, investment strategies, and fiduciary services, according to a PIB release.

During the search operation at his residence, corroborating evidences in the form of e-mails and documents have been found establishing his beneficial ownership of the foreign assets. In his statement recorded during the search, he has admitted to ownership of foreign assets. At the business premises, one hard disk containing data in the form of parallel set of books of accounts was found. A preliminary analysis of such gathered evidences indicate understatement of domestic income to the tune of Rs 30 crore from business undertaken in India. Further investigations are under progress.