IT Raid Uncovers Rs 50 Crore Tax Evasion in Odisha’s Hospitality Sector

In a sweeping crackdown on financial irregularities, the Income Tax Department has unearthed tax evasion worth nearly Rs 50 crore across several high‑profile restaurants and bars in Odisha.

The 24‑hour operation spanned Cuttack, Bhubaneswar, and Puri, targeting establishments including Embassy Bar, Sky Lounge, Meyser Express, and Tandooribala.

Officials revealed that Embassy Bar and Sky Lounge alone concealed nearly 80% of their taxable income, despite declaring an annual business of around Rs 25 crore.

Fifteen IT teams searched six locations, including owners’ residences, seizing vital financial records and documents.

Notices have been issued to the proprietors, requiring them to appear before the Income Tax office for questioning.

This marks one of the largest enforcement actions against tax evasion in Odisha’s hospitality industry, signalling the government’s firm stance on transparency and accountability.

The investigation is ongoing, with authorities scrutinising seized records to determine the full extent of financial fraud.

The raids have sent shockwaves through the state’s business community, underscoring the risks of non‑compliance in a sector that thrives on rapid growth and high consumer demand.