India Tax Dept Uncovers Rs 408 Crore Suppressed Sales in Restaurants

India's Income Tax Department uncovered evidence of suppressed sales totaling approximately Rs 408 crore during a nationwide survey of 62 restaurants conducted on March 8, 2026, across 46 cities in 22 states. The operation targeted the food and beverage sector amid suspicions of widespread tax evasion through manipulated billing practices.

The surveys, carried out under Section 133A of the Income Tax Act, involved examinations of business premises, including books of accounts, bank records, cash, stock, and documents. Officials focused on discrepancies in reported sales, particularly instances where bulk bills were deleted or modified to understate income. Preliminary findings from the exercise, which spanned locations such as Delhi, Mumbai, Chennai, Kolkata, Shimla, Guwahati, Ahmedabad, Bengaluru, and Kochi, revealed the scale of underreporting. Investigations remain ongoing, with authorities prepared to review additional records as needed.

This action stems from an initial probe launched in November 2025 into tax compliance patterns within the food and beverage industry. Using AI-enabled analytical tools, the department analyzed transactional data from about 1.77 lakh...