Raid: The Income Tax Department’s search of Banshidhar Tobacco Company exposed a startling amount of hidden assets and expensive cars, signalling a major crackdown on tax fraud in the sector. The department’s dedication to locating financial irregularities was demonstrated by the multistate operation. Read on to know more.
Luxury Fleet and Rs 4.5 Crores seized during raids
After conducting several raids on the Banshidhar Tobacco Company, the Income Tax department discovered a sophisticated network of financial manipulations that spans multiple states and even foreign borders. Alleged inconsistencies in the company’s claimed turnover have been uncovered by the searches, which took place in 20 sites including Kanpur, Delhi, Mumbai, and Gujarat. According to reports, there is a startling disparity between the declared income and the actual turnover.
Raids by 15 to 20 teams in five states literally shook down every tobacco leaf associated with Banshidhar Tobacco Company, unearthing a cache of high-end vehicles valued at Rs 50 crore, including a Rs 16 crore Rolls-Royce Phantom discovered at the residence of Shivam Mishra in Vasant Vihar, Delhi.
A McLaren, Porsche, and Lamborghini were among the other high-end vehicles taken from Shivam Mishra’s residence. According to reports, during the raids, the IT teams seized multiple papers and cash worth Rs 4.5 crores.
False turnover claimed
Sources claim that the tobacco company, which is well-known for providing raw materials to other businesses, greatly understated its turnover as compared to its true profits. While estimates based on the raid imply the real number to be between 100-150 crore, official records only suggest a turnover of 20 to 25 crore. The level of tax evasion and the strategies used by the business to hide its true financial situation have come under scrutiny in light of this disparity.
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