- NET Wb Desk
An amount of ₹250 crores was uncovered by Income Tax Department after it raided two groups actively engaged in cement manufacturing and railway contracts in Northeast and West Bengal.
The search was conducted on October 5 and 6 in Guwahati, Shillong, Rangia, Kolkata, and even Patna.
These searches and seizures resulted in the detection of undisclosed income over Rs 250 crore. Unaccounted cash of more than Rs 51 lakh has been seized,” the Central Board of Direct Taxes (CBDT) said in a statement on Friday.
Nine bank lockers have been put under prohibitory orders and are yet to be operated, it said.
The CBDT said the group “generated unaccounted income by indulging in out-of-books sales and booking bogus expenses.”
“This unaccounted income is laundered back into the business through shell companies,” it said.
The group used paper companies for accommodation entries to its flagship concern.
These paper companies were found to be non-existent at their given addresses.
“During the search, incriminating evidence indicating bogus unsecured loans, bogus commission paid, bogus share premium received through shell companies, etc. were also found,” it claimed.
The group was also found to falsely showing many tribal creditors to the tune of ₹38 crores. Details of certain offshore entities/ bank accounts were found during the search, which is not declared in the relevant returns of income, it claimed.
The other group raided for discrepancy regarding contracts is said to be active in executing railway contracts in Assam, Mizoram, and select parts of the Northeast.
A large number of sale deeds about land and properties have been found, the valuation of which could be over Rs 110 crore. During the search, corroborative evidence could not be produced to explain the source of acquisition of these assets, CBDT claimed.