I-T authorities detect Rs 65-cr tax evasion in hair export

I-T authorities detect Rs 65-cr tax evasion in hair export

Hair exported to Africa and European countries

I-T authorities detect Rs 65-cr tax evasion in hair export

The Director General, Income Tax (Investigation), Karnataka and Goa has found tax evasion to the tune of Rs 65 crore in collection, processing and export of  hair offered by devotees at temples.

Income tax searches in December last week resulted in a disclosure of Rs. 65 crore of previously undisclosed income as well as seizure of Rs 5 crore in cash and jewellery from a human hair exporter.

The I-T  sleuths had searched the premises belonging to businessman Srinivas Gupta, from Koppal. The searches were conducted at his  residence, hair processing unit in Bhagyanagar near Koppal and another hair processing unit at Elur in Andhra Pradesh.

A release from the I-T department said that besides temples, human hair was also purchased from beauty parlours. Some residents of ladies' hostels were also in the business of cutting off and selling their long locks to earn extra cash. "The hair is exported to Africa and European countries. Africa has a fascination for the dry hair market as the market for weaves, wigs and extensions is known- estimated to be worth 6 billion USD a year in 2015,'' the release said. The search teams also seized incriminating evidence of tax evasion that has been going on for many years. It was found that second quality sales and wastage sales were not accounted for and declared in the I-T returns, apart from bogus billing of purchases to siphon off money into huge investments.

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