New Delhi, Aug 11 The Income Tax Department has said that they carried out a search operation on a company engaged in mining, sugar manufacturing and liquor business in Madhya Pradesh and Mumbai, and found that it was involved in alleged tax evasion.
The person holding a top position in the business firm also holds a political post. The search operation carried out on July 14 covered several premises located in Madhya Pradesh and Mumbai.
"During the course of the search operation, a large number of incriminating documentary and digital evidences have been found and seized. The analysis of seized evidences of sand mining business reveals that the firm has been indulging in tax evasion by not recording sales in the regular books of account," an IT official said.
The official added that the comparison of actual sales as per digital evidence regarding accounted sales of contemporary months clearly exhibits regular large-scale suppression of sales exceeding Rs 70 crore.
Evidence of non-payment of royalty on such unaccounted sales has also been found.
As much as more than Rs 10 crore has been found to be paid in cash by the firm to other business associates, which is outside the regular books of account.
In the case of the firm's sugar manufacturing business, issues pertaining to stock difference have also been found.
Evidence gathered during the search further reveals that some benamidars have been made partners in a firm involved in the sand mining business and were also found to be declaring profits in their income tax returns.
However, the money was actually being transferred by them to the beneficial owner of the firm.
During the search, one such benamidar in his statement admitted to being merely a salaried employee, having neither any knowledge of the affairs of the business nor having received any profits from such business.
"So far, the search action has led to seizure of undeclared assets exceeding Rs nine crore," the official said.
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