I-T searches lead to detection of undisclosed foreign assets of over Rs 1,000 crore

Speed Post News Network

New Delhi : Taking forward the mission of the Government against black money, particularly undisclosed foreign assets, the Income- Tax (I_T) Department conducted searches on January 19, 2020, on a group which had been on their radar for having substantial undisclosed foreign assets. The operation covered 13 premises in NCR. The group is a leading member of the hospitality industry running a hotel abroad and a chain of luxury hotels under a prominent brand name situated at various locations in India.

The search operation has so far resulted in seizure of unaccounted assets valued at Rs 24.93 crore (cash of Rs  71.5 lakh, jewellery worth Rs 23 crore, and expensive watches valued at Rs.1.2 crore). Evidence seized during the search reveals that a large amount of black money was stashed abroad by the group through the mechanism of Trusts formed in early 1990s in tax havens, according to a PIB release.

Such foreign holdings of the main persons have remained hidden for decades beneath complex multi layered structures located in different countries ensuring secrecy. Search action further revealed that one of the close relatives of the promoter family was intentionally introduced as a front to ostensibly escape the provisions of domestic tax laws.

The investigation has successfully lifted the veil leading to detection of  undisclosed foreign assets of more than Rs 1,000 crore, apart from domestic tax evasion of more than Rs 35 crore which may, inter alia, lead to consequences under the Black Money Act, 2015, as also, action under the Income-tax Act, 1961 respectively. Foreign assets include investment in a Hotel in UK, immovable properties in UK and UAE, and deposits with foreign banks.