I-T Dept Probes Online Gaming Co, Unearths Cash Deals of Rs600 Cr

The income tax department on Thursday said it unearthed cash transactions of Rs600 crore during a recent probe of an online gaming and betting platform.

The Mumbai investigation wing of the department earlier this month carried out searches at 29 premises including in Mumbai, Delhi, Surat and Jaipur linked to city-based Game King Pvt Ltd for suspected tax evasion, it said.

“The search operating revealed that the group was operating in a clandestine manner and had concealed its operations and income from law enforcement agencies,” the tax department said in a news release.

The probe revealed that the assessee group, having a wide network of agents and area managers operating in different cities, collected cash from a large customer base who use the websites hosted on cloud servers by private operators, the department said, alleging that this cash was then sent to the group’s Mumbai headquarters through a hawala network. “Points were credited to the customers in their accounts after collecting cash from them,” it added.

The “unaccounted cash” was then accounted for in the books as unsecured loans, security premium and in the form of various other instruments, it said. S-ET

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