The Income tax department has initiated a major tax evasion investigation on Bollywood actor Sonu Sood that spans 28 venues and 6 cities.
The CBDT announced on Saturday that actor Sonu Sood and his associates evaded a total of Rs. 20 crore in taxes, claiming that the Income Tax Department raided him and a linked Lucknow-based infrastructure group and discovered that he routed his “unaccounted income in the form of bogus unsecured loans from many bogus entities.”
It also charged Sood with breaking the Foreign Contribution Regulation Act (FCRA) by soliciting donations from outside the United States.
The IT department discovered ‘incriminating evidence’ about Rs. 20 crore in tax evasion after large-scale search and seizure operations at multiple locations.
Sonu Sood’s undeclared income has been discovered in the form of ‘bogus unsecured loans and corporations,’ according to the financial watchdog. According to the IT Department, there have been cases where professional receipts have been disguised as loans in the books of accounts to avoid paying taxes.
The Income Tax Department has made five key claims against Sonu Sood
- Foreign donations worth Rs. 2.1 crore were made in violation of FCRA rules.
The Income Tax Department has claimed that several of the donations to Sood’s nonprofit foundation came from overseas companies, mostly through crowdfunding sites. These were held in contravention of the 2010 Foreign Contribution (Regulation) Act. “It has also been discovered that the Charity Foundation solicited cash to the tune of Rs. 2.1 crore from international donors on a crowdfunding platform in contravention of FCRA norms,” according to an official release.
- Unpaid income tax liabilities totaling Rs. 20 crore
Sonu Sood’s principal mode of operation, according to the IT Department, was to route his unaccounted revenue through phoney unsecured loans from numerous bogus organisations. So far, investigations have revealed the use of twenty such entries, the providers of which have admitted to providing false accommodation entries after being questioned. “They have agreed to accept cheques instead of cash. The entire amount of tax evasion discovered so far exceeds Rs. 20 crore “, according to the IT Department.
- Donations totaling 18.94 crores were received, but only 1.9 crores were spent.
The fake transactions, according to the IT Department, date back to June 2020, when Sonu Sood established a charitable foundation for various COVID-19-related relief efforts. According to the IT Department, the organization has received donations totalling Rs. 18.94 crore since March 2021, of which only Rs. 1.9 crore has been spent on various humanitarian efforts. Unused funds of Rs.17 crore have been discovered.
- 4.65 crore in bogus receipts with a JV infra company
Sonu Sood is alleged to have spent significant cash in a joint venture for a real estate project with Lucknow-based infrastructure business JV Infra. Tax evasion and accounting problems have been discovered in the company’s books. “So far, there has been evidence of about Rs. 65 crore in fake contracts. There has also been evidence of unaccounted cash expenses, unaccounted scrap sales, and digital data indicating unaccounted cash transactions “, according to the Internal Revenue Service.
- JV company’s circular suspicious transaction of Rs. 175 crore
When it comes to the company in question, it was discovered that JV Infra engaged in a shady circular transaction worth Rs.175 crore with another Jaipur-based firm. Unaccounted cash expenses, scrap sales, and digital evidence proving unaccounted cash transactions have all been discovered. Additional investigations are underway to determine the exact extent of tax evasion.
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Following the searches, the department confiscated Rs 1.8 crore in cash and ordered the closure of nine lockers.
After the IT department began its search on Wednesday, Kejriwal came out in favour, writing that the path of truth is fraught with challenges, but it always triumphs.
He stated, “With Sonu Sood Ji, there are prayers of lakhs of Indian families who have received his help in difficult times.”
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