NEW DELHI: The Income Tax Department (ITD) failed to unearth black money generated by several Maharashtra based firms despite getting clues on suspects who raised only bogus bills resulting in tax evasion of over Rs 10,640 crore, according to official auditor CAG.
Around 2,059 dealers issued invoices involving tax evasion of more than Rs 10,640 crore including maximum VAT of 12.5 per cent in Maharashtra, CAG said in its report presented in Parliament last week.
In 2008-09, Maharashtra Sales Tax Department (MSTD) in a disclosure to Bombay High Court informed about its probe on 1,555 hawala operators involving 39,488 beneficiary dealers who had passed on input tax credit of Rs 1,333 crore in the previous three fiscals.
They used to claim and obtain input tax credit against declaration of fake tax invoices without actual transactions.
The MSTD started putting out names of entities involved in such practises on its website from November 2011. (AGENCIES)
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