Kanpur, Uttar Pradesh: In a major crackdown on suspected tax evasion, the Income Tax Department (ITD) conducted raids on multiple locations linked to Bansidhar Tobacco Company, a prominent name in the tobacco industry. The raids, spanning across five states, targeted the company’s headquarters in Kanpur, Uttar Pradesh, along with 20 other locations, including Delhi, Mumbai, and Gujarat.
Discrepancies in Turnover Figures Raise Red Flags
The ITD initiated the action based on allegations that the company had significantly underreported its income to the tax authorities.
While Bansidhar Tobacco allegedly declared a turnover of Rs 20-25 crores to the ITD, officials suspect the actual figure to be much higher, potentially ranging between Rs 100-150 crores. This massive discrepancy in reported income raised serious concerns about potential tax evasion.
Luxury Cars and a Curious Number Plate Pattern
During the raids, ITD officials encountered a surprising discovery at the Delhi residence of Shivam, son of the company owner, K.K. Mishra. The team found a collection of luxury cars, including brands like Rolls-Royce, McLaren, Lamborghini, and Ferrari, all registered in the name of Shivam, his father, and the company itself.
What truly stood out was the identical number plate “4018” displayed on all these vehicles, raising questions about the source of these high-end assets and their connection to the alleged tax discrepancies.
Seizure of Cash and Crucial Documents
The ITD’s search operations yielded significant results. They reportedly seized cash amounting to Rs 4.5 crore along with crucial documents that could hold vital evidence in their investigation.
Sources suggest that the company might have been issuing fictitious checks to entities listed in their accounts while simultaneously supplying their products to major pan masala manufacturers. This alleged practice, if proven true, would constitute a clear attempt to manipulate financial records and evade taxes.
Multi-Location Raids and Expanding Investigation
The ITD’s operation extended beyond the company’s headquarters and Shivam’s residence. Raids were simultaneously conducted at the businessman’s bungalows in Kanpur and Delhi, targeting potential evidence hidden in these additional locations.
The widespread nature of these raids suggests a well-coordinated effort by the ITD to gather comprehensive evidence and unearth the extent of the alleged tax evasion.
Beyond Income Tax: GST Evasion Under Scrutiny
The investigation appears to be expanding beyond potential income tax evasion. Reports indicate that the ITD is also examining the possibility of Goods and Services Tax (GST) irregularities. Bansidhar Tobacco, with its extensive operations spanning multiple states and even reaching foreign countries, has become a focal point for the ITD’s investigation into potential tax violations.
Unearthing the Truth: The Road Ahead
The ongoing ITD raids on Bansidhar Tobacco have sent shockwaves through the industry. The allegations of tax evasion, coupled with the discovery of luxury cars and suspicious financial practices, paint a concerning picture.
As the investigation progresses, the ITD’s scrutiny will likely intensify, aiming to uncover the complete truth behind the company’s financial activities and determine the extent of any potential tax liabilities. The final outcome of this case will be closely watched, not only for its implications on Bansidhar Tobacco but also for its potential impact on the broader tobacco industry and its adherence to tax regulations.
Table: Summary of ITD Raids on Bansidhar Tobacco Company
| Aspect | Details |
|---|---|
| Locations Raided | Headquarters in Kanpur, 20 other locations across 5 states (Delhi, Mumbai, Gujarat, etc.) |
| Allegations | Underreporting of income (actual turnover suspected to be much higher than declared) |
| Seized Items | Cash (Rs 4.5 crore), documents, luxury cars |
| Additional Investigations | Potential GST evasion |
| Company Status | Under ITD investigation |
