New Delhi: On October 5, a search and seizure operation was conducted by the Income Tax Department in connection to two groups spread across various cities in Assam, Meghalaya and West Bengal.
As many as 15 premises belonging to the two groups located in Kolkata, Guwahati, Rangia, Shilling and Patna were searched by the Income Tax Department.
Out of the two groups, one is reported to be indulged in the cement manufacturing business. During the interrogation, it was revealed that the group was engaged in out-of-books sales and booking bogus expenses to generate unaccounted income.
The group uses shell companies to launder the income back into the business. Many paper companies were revealed to be run by the group to make sure that accommodation entries are provided to its flagship concerns.
However, the paper companies were later revealed to be non-existent when the Income Tax Department visited the given addresses.
An amount of over Rs 50 crores was revealed to be unaccounted which were secured through fake loans, fake commissions paid and fake share premium received through shell companies.
About Rs. 38 crores were wrongfully shown to be accounted to tribal individual creditors.
Also, several offshore entities or bank accounts that were not declared in the relevant returns of income were disclosed during the search operation.
The Income Tax Department recovered and seized incriminating documents, loose sheets and digital evidence from the second group which is reportedly indulging railway contracts in Assam, Mizoram and other parts of North-East. The evidence that was found revealed undisclosed investments in land and properties, with a value exceeding Rs 110 crores. Additionally, documents indicating cash transactions of more than Rs 13 crores involving the sale of land properties were recovered.
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