AgenciesCash transactions of Rs 600 crores have been unearthed by the income tax (IT) department in its recent probe on an online gaming and betting platform.
The Mumbai investigation wing of the IT department earlier this month carried out searches at 29 premises including those in Mumbai, Delhi, Surat and Jaipur linked to city-based Game King Pvt Ltd for suspected tax evasion.
"The search operations revealed that the group was operating in a clandestine manner and had concealed its operations and income from law enforcement agencies," said the IT department in a statement.
The probe revealed that the assessee group having a wide network of agents and area managers operating in different cities collected cash from a large customer base who use the websites hosted on cloud servers by private operators. This cash was then sent to the group's Mumbai headquarters through network. "Points were credited to the customers in their accounts after collecting cash from them. The said cash was sent through hawala channels to Mumbai", added the release
The unaccounted cash was then introduced in the books as unsecured loans, security premium and in the form of various other instruments. "The cash is routed through several layers of dummy companies provided by entry operators," the IT further said.
The department has attached listed securities of more than Rs 550 crores and 30 bank accounts have also been provisionally attached.
The Mumbai investigation wing of the IT department earlier this month carried out searches at 29 premises including those in Mumbai, Delhi, Surat and Jaipur linked to city-based Game King Pvt Ltd for suspected tax evasion.
"The search operations revealed that the group was operating in a clandestine manner and had concealed its operations and income from law enforcement agencies," said the IT department in a statement.
The probe revealed that the assessee group having a wide network of agents and area managers operating in different cities collected cash from a large customer base who use the websites hosted on cloud servers by private operators. This cash was then sent to the group's Mumbai headquarters through network. "Points were credited to the customers in their accounts after collecting cash from them. The said cash was sent through hawala channels to Mumbai", added the release
The unaccounted cash was then introduced in the books as unsecured loans, security premium and in the form of various other instruments. "The cash is routed through several layers of dummy companies provided by entry operators," the IT further said.
The department has attached listed securities of more than Rs 550 crores and 30 bank accounts have also been provisionally attached.
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