The Kanpur-based tobacco manufacturer illegally routed the funds to its real business via 115 shell companies.
New Delhi: Income Tax officials have exposed a tax fraud that runs to the tunes of more than Rs 100 crore. The fraud was unearthed when a team of IT officials, on Wednesday (July 28), raided more than 19 locations related to SNK Pan Masala manufacturers in Kanpur, Noida, Ghaziabad, Delhi and Kolkata.
The Kanpur-based tobacco manufacturer allegedly routed the funds illegally to its real business via 115 shell companies. A.J. Sungadhi Private Limited is the manufacturer of the SNK Pan Masala which is a popular pan masala brand in Uttar Pradesh.
The raids were conducted at several locations including offices and homes of several employees. The residence of the manufacturers in Swaroop Nagar, Kanpur, and business setups located on Express Road were also raided by the IT Department.
On the first day of the raids, the income tax department had found a tax fraud worth Rs 100 crore while assessed unaccounted cash of around Rs 400 crore was also discovered by the officials. Also Read: Micromax In 2b budget smartphone launched in India: Check price, specs and other details
The pan masala company was allegedly routing the black money from its pan masala business to its real estate unit. The company had taken loans on behalf of shell companies, the Income Tax Department found during the raids. Also Read: Delhi HC to hear pleas of Facebook, WhatsApp challenging new IT Rules in August