IT dept carries out searches and seizure at Hyderabad based pharma co.
New Delhi, 01 March (HS): The Income Tax Department carried out search & seizure operations on February 24 on a major Pharmaceutical group based out of Hyderabad. This Pharmaceutical group is engaged in the business of manufacturing of intermediates, Active Pharmaceutical Ingredients (APIs) and formulations. Majority of the total manufactured products are exported to various countries i.e. USA/Europe. The search operation was carried out at about 20 locations in five states.
Searches have resulted in seizure of cash amounting to Rs. 1.66 crore. During the search action incriminating evidence in the form of digital media, pen drives, documents, etc. have been found and seized. Incriminating digital evidences were gathered from SAP @ ERP software maintained by the assesse group.
During these searches, issues relating to purchases made from bogus and non-existent entities, artificial inflation of certain heads of expenditure, along with suppression of receipts relating to by-product sale were detected. Further, evidence of on-money payment for purchase of lands was also found. Multiple other legal issues were also identified such as personal expenses being booked in the company’s books and land purchased by related concerns / individuals below govt. SRO value.
The search has led to unearthing of evidence relating to unaccounted income of around Rs. 400 crore out of which the assessee group has admitted an additional income of Rs. 350 crore, the Ministry official said.
