Bhopal (Madhya Pradesh): The Income Tax department conducted survey at various locations across the state on Friday, uncovering significant tax evasion amounting to crores of rupees.
Sources said that surveys were carried out at several places, including Morena, Pipariya, and others. In one of the major raids targeting the mustard oil firm KBL Agro Private Limited, the IT department detected tax evasion worth approximately Rs 7 crore. Prominent jeweller Shyam Sundar Soni of Pipariya was also surveyed, with tax evasion estimated to be around Rs 15 crore.
Similar survey was conducted against Mangalam Food Products and Jai Trading Company, leading to detection of Rs 5 crore in tax evasion. The I-T department also extended its surveys to certain areas in Chhattisgarh. It was found that assessees had employed various deceptive tactics to evade taxes, including underreporting expenditures in official records. A large number of incriminating documents were recovered, suggesting that the total tax evasion figure could rise further as investigations continue.
Bogus refunds
The Income Tax (I-T) department also launched a major crackdown on fraudulent refund cases across state, conducting surveys in Indore, Jeerapur, Dewas, and other areas. The department uncovered bogus refund claims amounting to approximately Rs 15 crore, with investigations still underway. In Indore, the I-T department identified around 1300 cases of fake refunds, while in the smaller town of Jeerapur (Rajgarh), 230 fraudulent refunds totalling Rs 60 lakh were detected. Dewas reported around 2000 bogus refund claims.
Lens on fraudulent refunds: I-T
Purushottam Tripuri, Principal Chief Commissioner of Income Tax (MP & CG), said that the government trusts taxpayers and only a small percentage of income tax returns are scrutinised.
However, some tax practitioners are involved in promoting fraudulent refunds by incorrectly applying deductions and exemptions. He said that these practitioners help taxpayers report inaccurate incomes by claiming excessive expenses or hiding income, leading to a significant shortfall in tax revenue for the government.
To curb this tax evasion, the I-T department has identified certain tax practitioners and business entities involved in fraudulent activities. Hence, surveys are being conducted on selected business entities in Madhya Pradesh and Chhattisgarh, he said.
