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IT raids unearthed Rs 880 crore income concealment at Bengaluru-based firm

Prime News, National, Bengaluru, July 14:-The income tax department conducted raids on two business premises of one of India’s leading manpower services provider in Bengaluru on July 8.
The assessee has been claiming huge deduction u/s 80JJAA of Income-tax Act, 1961, which incentivises new employment generation, subject to fulfilment of certain conditions such as emoluments paid to the employee, which should be less than Rs 25,000 per month, and number of days of employment, among others, the finance ministry stated.

During the course of the survey operation, evidence of tax evasion has been gathered regarding wrongful claims of deduction under section 80JJAA, it said.

“The investigations further revealed, that, even though the emoluments of new employees added were more than Rs 25,000 per month, the assessee has been wrongfully claiming deduction u/s 80JJAA by excluding certain components of emoluments of such employees to fit into the eligible emoluments limit of Rs 25,000 per month,” the statement said.
Further, it has been found that deduction u/s 80JJAA has been claimed in subsequent years, even though certain eligible employees were no longer on the payroll of the assessee.
“Overall, the survey has resulted in detectIon of concealment of income to the tune of Rs 880 crore spread over various assessment year,” the ministry said.
Further investigation in the case is underway.

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