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Mar 10, 2026
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Income tax department finds Rs 408 crore sales suppression by restaurants in nationwide probe
The Income Tax Department has detected suppression of sales worth around Rs 408 crore by restaurants following a nationwide verification exercise conducted across the food and beverage (F&B) sector.
The probe stems from an investigation launched in November 2025 to examine possible tax evasion patterns among restaurants. During the exercise, the department found that several establishments were allegedly deleting bulk bills and making other alterations in their billing systems to understate actual sales.
Officials analysed transactional data from about 1.77 lakh restaurants using artificial intelligence-enabled analytical tools and compared it with the turnover declared in their income tax returns. The analysis pointed to large-scale under-reporting of income across several cases.
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