The documents recovered indicate that the loss was artificially created to set off the respective capital gains
Following a search and seizure operation on Ramky Group on July 6, the Income Tax department has allegedly seized incriminating documents indicating unaccounted transactions.
According to a statement from Income Tax department, during the search operation many incriminating documents, loose sheets etc were seized indicating involvement of the group in unaccounted transactions. It was found that the group had sold majority stake, to a non-resident entity based in Singapore, in one of its group concerns during FY18-19 and had earned huge capital gains.
The group subsequently devised various colourable schemes by means of entering into a series of share purchase/sale/non arm’s length valued subscription and subsequent bonus issuance etc with related parties, creating a loss which was set off against the capital gains earned, the statement said.
The documents recovered indicate that the loss was artificially created to set off the respective capital gains. The search operation led to detection of artificial loss of approximately ₹1,200 crore, which is to be taxed in the hands of the respective assessees.
Further, the search operation found that the assessee had incorrectly claimed bad debts to the tune of ₹288 crore on account of related party transactions, which was set off against the aforementioned profits earned.
During search proceedings, incriminating documents relating to this artificial/incorrect claim were found. Unaccounted cash transactions with the associates of the group have also been detected during the search, and the quantum and modus of the same is under examination.
Following this search, the entities and associates have admitted to having unaccounted income of ₹300 crore and have also agreed to pay due taxes.
Further investigation is now under progress.