Wizcraft searched for hidden income
The income tax (I-T) department on Thursday searched the premises of event management company Wizcraft International Entertainment Private Limited to verify if it had attempted to falsify records of income and expenditure.mumbai Updated: Jan 21, 2011 02:26 IST
The income tax (I-T) department on Thursday searched the premises of event management company Wizcraft International Entertainment Private Limited to verify if it had attempted to falsify records of income and expenditure.
The company was involved in the opening and closing ceremonies of the controversial Commonwealth Games (CWG) held at New Delhi last year.
When asked whether Wizcraft’s offices were searched, BP Gaur, director general (investigation), Income Tax, Mumbai, said: “Yes, searches are on.”
Sabbas Joseph, director, Wizcraft, did not respond to the text message sent on his mobile phone. When the Hindustan Times called him and asked about the searches, he said he was in Canada and would call later.
The company also did not share contact details of its spokesperson.
An I-T officer, requesting anonymity because he is not authorised to speak to the media, said at least 70 officers and staff of the department took part in searches at six premises in Mumbai and surveys on the company’s offices in New Delhi, Bangalore, Chennai, Hyderabad and Kolkata.
During the searches, the I-T officials claimed to have found some receipts that showed that certain payments were taken in cash but not accounted for.
The search teams were also probing some expenditure in organising certain events. “Showing artificial expenditure reduces profit in records, which helps evade tax,” the officer said.
Among the expenditures being scrutinised by the I-T department are the ones shown for organising the CWG opening and closing ceremonies.
The department will take time to find out the exact amount of concealed income because all the directors of the company are in Toronto, Canada.
“On Monday, we will ask them to explain the artificial expenditure and cash receipts,” the officer said.
The department has seized financial records of the company.
The department has also sealed two bank lockers belonging to the company.