New Delhi, March 10 -- The Income Tax Department has carried out a nationwide verification exercise targeting alleged tax evasion in the food and beverage sector, uncovering significant suppression of sales by several restaurants, officials said today.
According to the information, an investigation conducted in November 2025 revealed a pattern of tax evasion involving restaurants deleting bulk bills and making other modifications to reduce their reported turnover.
Using AI-enabled analytical tools, the department analysed transactional data from about 1.77 lakh restaurants and compared it with the turnover declared in their Income Tax Returns. The analysis indicated large-scale under-reporting of income, with some establishments failing t...