IT dept unearths alleged tax violations in Bengaluru

The department said the group has a presence in more than 50 countries. The department said that around 36 premises spread across nine states were searched.

It said that sufficient evidence in the form of documents and digital data has been found during the searches. The department’s statement said an initial glut of evidence suggests that the group is allegedly debiting unaccounted expenses in its books of account on account of free distributions to medical professionals under the head “sales and promotions”.

These freebies reportedly included travel expenses, perquisites and gifts, etc. to doctors and medical professionals for promoting the group’s products under “promotions and publicity”, “seminars and seminars” and “medical advice”.

The department alleged that the group has adopted unethical practices to promote its products. “The quantum of such free gifts is estimated to be around Rs.1000 crores,” the statement said.

The statement also alleged that the group has claimed artificially inflated deductions under special provisions in respect of certain incomes, by resorting to over appropriation of expenses and revenues to the entity eligible for such deduction.

The department alleged that several other means of tax evasion have also been detected including inadequate allocation of research and development expenses to eligible units and inflated claim of weighted deduction of research and development expenses. volume of do The theft allegedly sought through such means is estimated to exceed Rs. 300 crore, it said.

Alleged cases of violation of provisions of deduction of tax at source under section 194C of the Income Tax Act, 1961 have also been detected. The department said. The department has also seized some unaccounted cash and gold and diamond jewellery.

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