The Income Tax Department carried out search and seizure operations in the case of two groups based in the North-East Region and West Bengal, said the Ministry of Finance on Friday.
As per an official release, during the course of the search operation carried out on Tuesday, a total of 15 premises were covered in the search action, which was spread across Kolkata, Guwahati, Rangia, Shillong and Patna.
"One of the groups is engaged in the business of cement manufacturing. During the search action, it was found that this group generated unaccounted income by indulging in out-of-books sales and booking bogus expenses," the release said.
This unaccounted income is laundered back into the business through shell companies. Evidence found during the search revealed that many paper companies are run by the group to provide accommodation entries to its flagship concern. These paper companies were found to be non-existent at their given addresses.
The ministry said that during the search, incriminating evidence indicating bogus unsecured loans, bogus commission paid, bogus share premium received through shell companies was also found. This evidence indicates that an amount of more than Rs 50 crore may be unaccounted for.
The group was also found to be wrongly showing tribal individuals as creditors, such amounts being to the tune of around Rs. 38 crore. Further, details of certain offshore entities and bank accounts were found during the search, which is apparently not declared in the relevant returns of income, read the release.
The ministry said that the other group is actively engaged in executing railway contracts in Assam, Mizoram and other parts of the North East. During the search action, incriminating documents, loose sheets and digital evidence were seized indicating undisclosed investments in land and properties. A large number of sale deeds pertaining to land and properties have been found, the valuation whereof could be in excess of Rs 110 crore.
During the search, corroborative evidence could not be produced to explain the source of acquisition of these assets. Further, documents containing details of cash transactions amounting to more than Rs 13 crores in the sale of properties have been found, informed the Ministry.
The ministry further informed that these search and seizure actions resulted in the detection of undisclosed income in excess of Rs 250 crore. Unaccounted cash of more than Rs 51 lakh has been seized. Nine bank lockers have been put under prohibitory orders and are yet to be operated. Further investigations are in progress.
( With inputs from ANI )
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