The income tax raid on two groups of supari (areca nut) trading companies in the city in January has revealed a tax evasion of nearly 1,700 crore. This includes 1,300 crore from a single firm. It is for the first time that an undisclosed income exceeding 1,000 crore has been calculated following a raid in Nagpur region that covers Vidarbha, Marathwada and Nashik.
Sources said the raid indicates the scale of unaccounted money changing hands in the city.
As an immediate consequence, the groups will have to cough up 60% as tax. This comes to more than 1,000 crore for both the groups clubbed. The hidden income deals with a block period of the previous six assessment years, said sources.
Supari trade in the city had been on the taxmen’s radar since long. During the raid, the tax sleuths could lay hands on a number of parallel books of accounts which spoke of massive cash transactions. The buyers’ real identities are not revealed and the entries were made against code names. Since there were no bank transactions against the sales recorded in such books, the taxmen have established it as cash deals.
Now as a next step the supari groups will have to file a block return taking into account the undisclosed income also and pay up the tax. A final assessment would also be done after that. If the companies own up, the income would be also exempted from penalty to the extent of the admission made in terms of income earned, said sources. The parties covered under the raid can also file an appeal.
Sources privy to the supari trade, said use of smuggled nuts from countries like Indonesia, Thailand and Myanmar has been rampant. The nuts are later shown as produce purchased form Indian farmers or ultimately the entire chain of transaction happens in cash evading tax at every level.
Source from: https://timesofindia.indiatimes.com/city/nagpur/two-supari-trading-cos-evaded-1700-crore-tax/articleshowprint/130478319.cms
