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I-T Dept Uncovers Rs 408 Crore Sales Suppression by 62 Restaurants

The Income Tax Department conducted a nationwide survey on 62 restaurants across 22 states, revealing suppression of sales worth approximately Rs 408 crore. The investigation, part of a broader probe into the Food and Beverage sector, used AI-enabled analytical tools to compare transactional data from about 1.77 lakh restaurants with their filed tax returns. It found practices like deletion of bulk bills and exclusion of transactions from reported sales. The department has now launched the SAKSHAM NUDGE campaign, contacting 63,000 restaurants to file updated returns before March 31, 2026.

Key Points: I-T Survey Finds Rs 408 Cr Sales Suppression at 62 Restaurants

  • Rs 408 crore sales suppression
  • 62 restaurants across 46 cities
  • AI analysis of 1.77 lakh eateries
  • Deletion of bulk bills found
  • SAKSHAM NUDGE campaign launched
2 min read

I-T sleuths reveal suppression of sales worth Rs 408 crore by 62 restaurants

Income Tax Department's nationwide survey reveals 62 restaurants suppressed sales worth Rs 408 crore. AI tools analyzed 1.77 lakh eateries.

"Advanced analytics of transactional data from about 1.77 lakh restaurants... was carried out using AI-enabled analytical tools. - Finance Ministry"

New Delhi, March 9

A nationwide survey conducted by the Income Tax Department on 62 restaurants across 46 cities in 22 states has revealed suppression of sales amounting to around Rs 408 crore, Finance Ministry said on Monday.

The I-T Department carried out investigation relating to tax evasion pattern in Food and Beverage sector in November 2025.

During the exercise, it was found that several restaurants were engaged in deletion of bulk bills and other modifications to suppress the actual sales.

"Advanced analytics of transactional data from about 1.77 lakh restaurants in the F&B sector was carried out using AI-enabled analytical tools. The data was compared with the turnover declared in their Income Tax Returns," said the ministry in a statement.

The analysis revealed large-scale under-reporting of income, according to the Department.

In some cases, recorded sales were not fully reflected in financial accounts or tax filings, and certain transactions were excluded from reported sales.

"Consequently, on 8 March 2026, a nationwide survey was conducted on 62 restaurants across 46 cities in 22 States. On a preliminary basis, the exercise revealed suppression of sales amounting to around Rs. 408 crore. Investigations in this regard are underway," the ministry informed.

The Department said it continues to emphasise voluntary compliance and a trust-based approach.

It has commenced the SAKSHAM NUDGE campaign to guide and advise taxpayers to correct their mistakes.

Taxpayers are encouraged to file updated returns under Section 139(8A) of the Income Tax Act. In the first phase, emails and messages will be sent to the identified 63,000 restaurants, requesting them to update their returns before March 31, 2026.

A comprehensive picture of tax evasion would appear after the investigation finally gets over.

- IANS

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Reader Comments

P
Priya S
Not surprised at all. How many times have we asked for a proper bill and they give a handwritten chit or say the machine is not working? This is a nationwide problem. Hope the SAKSHAM NUDGE campaign actually works.
A
Aman W
While tax evasion is wrong, I hope the investigation is fair. The restaurant business has very thin margins, especially after COVID. The compliance process should be simpler. The trust-based approach is a good step if implemented properly.
S
Sarah B
Interesting to see the scale. 62 restaurants across 46 cities... this is clearly a systematic issue. The advanced analytics part is impressive. This recovered money should go towards public welfare schemes.
V
Vikram M
Finally some action! This happens at every level, from small dhabas to fine dining. As a customer, I always insist on a GST bill. It's our duty too. Jai Hind!
K
Karthik V
The amount is staggering. But I have a respectful criticism: the IT department should also focus on simplifying the tax filing process for small businesses. Sometimes complexity leads to evasion. The nudge campaign is a positive move.

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