70,000 crore tax evasion through Billing software

Recent reports from February 2026 indicate that the Income Tax Department has uncovered a massive ₹70,000 crore tax evasion scam involving over 1.7 lakh restaurants across India. While Petpooja itself has not been charged with malpractice, its software has been identified as a primary data source for the investigation.

Key Findings of the Investigation

Authorities used AI and Big Data analytics to reconstruct actual turnovers from 60 terabytes of billing data. The investigation revealed several “malpractice” patterns used by restaurant owners through their billing software:

• Selective Deletion: Specific cash invoices were deleted to under-report daily sales.
• Bulk Wiping: Entire date ranges (7–30 days) of billing history were deleted from the system.
• Post-Billing Manipulation: Bills were reportedly modified after payment—for example, reducing a ₹2,784 bill to just ₹27 in official records.
• Sales Suppression: An average of 25–27% of sales were found to be suppressed or unreported to evade GST and Income Tax.

Petpooja’s Role and Data Sharing

According to reports and community discussions, Petpooja reportedly shared its customer billing data with tax authorities to assist in the probe.

• Forensic Reconstruction: Investigators used backend server logs from the software to find data trails that remained even after users deleted local records.
• Compliance Warnings: The software’s ability to sync and store data in the cloud made it possible for the I-T department to perform digital forensic reconstructions of turnover.

The Department 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, requesting them to update their returns before 31 March 2026.

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