The Income Tax Department launched searches at Ramee Group of Hotels premises early on Tuesday amid suspected tax evasion, according to sources.
The group owns several properties in India and the United Arab Emirates (UAE).
Ramee Group owner Vadaraj Shetty features among the top 100 industrialists in Dubai.
Hospitality chain Ramee Group of Hotels has a presence in India, Bahrain, Dubai and Oman, with more than 40 properties, with the group operating several restaurants, cafes, nightlife destinations and innovative cloud kitchens under one brand. Its popular brands include Troy, Vice, Ocho, Tanatan, Mirch, Pizzata and R-Adda.
Founded in 1985, the Ramee Group of Hotels opened its first hotel in Mumbai in 1994, two years after beginning its international journey. In 2002, it strengthened its portfolio by acquiring three Mahindra Holidays hotels.
The group entered the premium segment in 2011–12 with its first 5-star properties in India and Bahrain. It unveiled its first lifestyle hotel — Ramee Dream — in 2021, according to the portal.
Here are answers to a few frequently asked questions (FAQs) about income tax investigations in India:
What is an income tax search?
An income tax search — popularly referred to as a raid — is carried out by the Income Tax Department.
This operation involves investigators searching the premises of individuals or entities suspected of tax evasion.
Which law are income tax raids conducted under?
Income tax raids are held under Section 132 of the Income Tax Act, 1961.
What prompts income tax authorities to launch a raid?
An income tax raid is conducted when the taxman has information that supports suspicion of income tax evasion. The searches are to find evidence supporting such suspicion.
Who authorises an income tax search?
These raids are authorised by senior I-T officers.
Can digital devices and documents be seized during these searches?
What is an income tax survey? Is it different from a raid?
An income tax survey is a procedure conducted by the taxman mainly to collect information about an assessee’s business operations, covering details ranging from assets to financial books.
These surveys are authorised under Section 133A of the Income Tax Act, 1961.
Typically, these surveys are performed at the business premises during normal business hours, to verify records, ascertain income, and collect details for assessment purposes.
This action is different from an income tax raid.
Also known as searches, income tax raids are typically a ‘search and seizure’ operation under Section 132 of the Income Tax Act that enables the taxman to enter any location — including residential or office premises — at any time, with investigators having powers to seize cash, valuable items, or any other kind of suspected evidence.
Can a taxpayer challenge a search?
Are Income Tax searches made public?
The department does not officially disclose names or details unless it leads to prosecution or a public statement is warranted.
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