Kanpur: The Income Tax Department conducted a major survey operation in Kanpur on Wednesday amid suspicions of a significant mismatch between the business turnover and tax payments of two liquor companies. Separate teams surveyed seven premises linked to Rajasthan Liquor Company and Aarti Distilleries simultaneously. Preliminary information indicates that the two companies have an annual turnover of around ₹1,400 crore to ₹1,500 crore, while their reported income tax payments were allegedly only around ₹8 crore to ₹9 crore. The department is examining whether the difference indicates tax evasion.
More than 60 officials were deployed in separate teams for the operation. The teams simultaneously surveyed two units of the company in Rania, along with offices in Swaroop Nagar, Tilak Nagar, Fazalganj, Shastri Nagar and Mall Road. Officials examined financial records, transaction documents, income and expenditure details and other business-related papers. The objective is to determine whether the companies accurately reported their actual income and turnover or deliberately understated portions of their business activity.
Investigation Into Income and Expenditure Mismatch
According to sources, the initial examination reportedly uncovered documents that could provide clues about possible tax evasion. Officials are examining the companies’ actual earnings and expenditure and comparing them with the figures recorded in their official documents. Investigators suspect that a portion of the business income may have been adjusted or diverted through different channels before being shown as lower income in records.
The department has also reportedly found documents related to the purchase of properties in Kanpur and other cities using funds generated through the companies’ businesses. In addition, investigators found information indicating a partnership in a company involved in the foreign liquor business. Income Tax officials are now examining the financial links between these investments and the declared business activities of the companies.
Role of Tilakraj Sharma’s Family Under Examination
The operations of Rajasthan Liquor Company and Aarti Distilleries are reportedly associated with businessman Tilakraj Sharma, while members of his family are directors in the companies. Their business interests include various liquor brands as well as country-made liquor. Officials are examining the financial transactions between the companies and the nature of their business relationships.
During the survey, officials reviewed records available at company offices and other premises. If discrepancies are established between the actual scale of business and figures reported in income tax returns, the department is expected to assess the financial records in greater detail and determine the corresponding tax liability.
The exact amount of alleged tax evasion has not yet been established. The survey is still at an initial stage, and officials are expected to compare documents, account books, property records and financial transactions before reaching any conclusion.
GST Action Against Lumec Energy
Meanwhile, the State Goods and Services Tax Department also conducted a separate operation against Lumec Energy Private Limited, a company involved in supplying defence products. Four GST teams carried out the action on Wednesday and examined records and documents related to the company’s business and GST compliance.
The simultaneous tax-related actions have increased scrutiny of business and financial activities in Kanpur. However, both investigations are currently at an early stage. The Income Tax Department is examining the accounts, assets, investments and transactions of Rajasthan Liquor Company and Aarti Distilleries in detail.
The department is expected to determine the actual tax liability only after completing its verification of the financial records and documents recovered during the survey. If discrepancies or deliberate suppression of income are established, further proceedings may follow under applicable tax laws. For now, officials are continuing their examination of the records and financial transactions to determine the extent of any alleged tax irregularities.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
