The Income-Tax Department has detected under-reporting of sales worth Rs 408 crore after it conducted a nationwide survey of restaurants on charges of tax evasion, the CBDT said on Monday. ADVERTISEMENT"A nationwide survey was conducted on 62 restaurants across 46 cities in 22 states. The statement said the investigation began after the taxman initiated a probe in November 2025 into the food and beverage sector. Advanced analytics of transactional data from about 1.77 lakh restaurants was carried out through AI tools, according to the CBDT. It was discovered that certain hotels and restaurants were allegedly manipulating the software to under-report their income.

Source: The Telegraph March 09, 2026 16:52 UTC