Rs 880 Crore ”Concealment” Found In Income Tax Survey Of Bengaluru Firm
In a survey on two premises in Bengaluru on one of India’s leading manpower services providers, Income Tax department found “concealment” of income of Rs 880 crore spread over various assessment years.
In an official release, the Ministry of Finance said that Income Tax Department carried out a survey operation on July 8.
“The assessee has been claiming huge deduction under section 80JJAA of Income-tax Act, 1961 which incentivises new employment generation, subject to fulfillment of certain conditions such as emoluments paid to the employee (which should be less than Rs 25,000 per month) and a number of days of employment etc,” the release said.
The Ministry said that during the course of the survey operation, evidence of tax evasion were gathered regarding wrongful claims of deduction under section 80JJAA of Income-tax Act, 1961.
“The investigations further revealed, that, even though the emoluments of new employees added were more than Rs 25,000 per month, the assessee has been wrongfully claiming deduction under section 80JJAA by excluding certain components of emoluments of such employees to fit into the eligible emoluments limit of Rs 25,000 per month,” it said.
Further, the Income Tax department also found that deduction under section 80JJAA has been claimed in subsequent years, “even though certain eligible employees were no longer on the payroll of the assessee.”
“Overall, the survey has resulted in the detection of concealment of income to the tune of Rs 880 crore spread over various assessment years. Further investigations in the case are in process,” the Ministry added.
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