Particle.news
Download on the App Store

Income Tax Department Flags ₹408 Crore in Suppressed Restaurant Sales After Nationwide Survey

The department has begun a voluntary compliance push, asking about 63,000 outlets to file updated returns by March 31.

Overview

  • On March 8, officers surveyed 62 restaurants across 46 cities in 22 states under Section 133A, and investigations into the preliminary findings are underway.
  • AI-enabled analysis of data from about 1.77 lakh restaurant IDs identified tactics such as bulk deletion of bills and other alterations used to hide turnover.
  • The probe stems from a Hyderabad investigation into manipulated billing software, broadening the focus from outlets to point-of-sale vendors and centralized data stores.
  • Through the SAKSHAM NUDGE initiative, messages are being sent to roughly 63,000 restaurants to file updated returns under Section 139(8A) by March 31.
  • Media have cited far larger concealed sales tied to a Hyderabad biryani chain and a common software platform, but those estimates remain unverified by the CBDT.