Income Tax Department carried out searches on various persons based in Kolkata, engaged in the business of electrical equipment and trading of decorative lighting, and seized more than Rs 3.5 crores in the process.
According to an official release, the searches were carried out on Tuesday, and cases were developed through market intelligence and field inquiries. "Search and seizure action was carried out at more than 3 premises in Kolkata on the evening of March 9," it said.
As per the Central Board of Direct Taxes (CBDT), the search action has resulted in the unearthing of incriminating evidences (both physical and electronic) where prima facie it has been observed that various bank accounts are being used by these persons for squaring off-trade account with Chinese exporters.
"These products were allegedly not imported at arm's length price so as to have less impact of customs duty on imported products, thereby reducing the purchase price. Several unaccounted transactions have also been found pertaining to the sale of electrical equipment in the domestic market," CBDT said.
A preliminary inquiry of CBDT has also indicated that the persons against whom search and seizure operations were conducted are engaged in a clandestine operation, wherein they receive cash, convert them into the foreign exchange through individuals engaged in such conversion work (also covered) and through some bank accounts. The amount is transferred to foreign accounts of Chinese exporters who export different kinds of goods to Indian importers.
"Hence, part of the purchase cost is transferred to the accounts of Chinese exporters through this mode. Various mobile and electronic devices having such communication/evidences have been seized," it said
"Unaccounted cash in excess of Rs 3 crore has been found, which has been seized. In one more separate action conducted by the department, Rs 76 lakh has been seized," the investigation agency added.
CBDT said further investigations in the case are in progress.
( With inputs from ANI )
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