IT raids Cipla, Wockhardt, Monginis

Income Tax director (investigations), Padmakar Misra said: “Since a large number of lockers have to be opened, the search operations will continue foranother four days.”

The Income Tax department claims to have made a thorough study of the modus operandi being followed by these pharmaceutical companies for evading taxes before undertaking the search operations. In the case of promoters of one of the pharma companies even the undisclosed deposits to the tune of Rs 2 crore in banks abroad have been discovered.

IT raids have also found strong evidence of evasion of tax by making excess claims of deduction u/s.80IA of the IT Act. "Though the scrutiny of documents relating to such modus operandi are still under examination and exact quantification would take some more time, excess claim to the tune of Rs 10 crore have already been detected," the release adds. According to IT estimates, pharma companies claim u/s 80IA of more than Rs 40 crores annually.

The IT tax officers have already seized cash of Rs 67 lakh and jewellery valued at Rs 62 lakh. Fourteen lockers have also been sealed which are likely to contain substantial undisclosed assets.

The search of the company directors’ homes revealed lavish lifestyles and substantial undisclosed investments made interior decoration of the residence. The incriminating papers indicating unaccounted expenses of more than Rs 50 lakh were found in the houses of the directors of the companies.

In the case of cake maker, Monginis which has more than 230 franchisee outlets all over the country (117 in Mumbai itself) it was found that profit margins have been suppressed to evade tax. During the search, incriminating documents containing complete costing of different items being produced by the assessee were found which prima facie indicate concealment of income of several crores in recent years.