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Income Tax dept conducts searches on big firms in Rajasthan, Maharashtra

Both search operations were carried out on August 3, 2022, in the two states. The investigations are in progress.Premium
Both search operations were carried out on August 3, 2022, in the two states. The investigations are in progress.

  • The department conducted searches on two major groups engaged in the manufacturing of steel TMT Bars spread over Jalna, Aurangabad, Nashik, and Mumbai. While, an investigation took place in a Jaipur-based group, engaged in the business of gems and jewellery, hospitality, and real estate.

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The Income Tax Department carried out a search operation in various locations in Maharashtra and Rajasthan. The department conducted searches on two major groups engaged in the manufacturing of steel TMT Bars spread over Jalna, Aurangabad, Nashik, and Mumbai. While, an investigation took place in a Jaipur-based group, engaged in the business of gems and jewellery, hospitality, and real estate.

Both search operations were carried out on August 3, 2022, in the two states. The investigations are in progress.

Maharashtra:

In Maharashtra, the IT department carried out searches on two major groups engaged in the manufacturing of steel TMT Bars. The operations covered over 30 premises and were spread over Jalna, Aurangabad, Nashik, and Mumbai. During the investigation, the department found and seized several incriminating evidences.

As per the evidences seized from both the groups, it was revealed that they were engaged in large-scale tax evasion, resorting to inflation of expenditure through bogus purchases from several entities.

These entities have also been found to be involved in GST frauds. Evidence has also been found of excess stock of raw materials, not recorded in the books of account, exceeding 120 crore, as per Finance Ministry's statement.

Further, evidences in one of the group showed that it has indulged in layering its unaccounted income through bogus unsecured loans and share premiums, obtained from Kolkata-based shell companies.

Also, the department found a large number of lockers of both the groups, opened in the names of employees of the companies, which were maintained with a Co-operative Bank.

FinMin's statement added that during the search operation, more than 30 bank lockers, including several lockers in the Co-operative Bank, were searched. Huge unaccounted cash and gold jewellery have been found and seized from these lockers.

The department also seized a substantial amount of unaccounted cash from a secret room located on the farmhouse belonging to one of the groups.

So far, the department has seized unaccounted cash of Rs.56 crore, and bullion and jewellery worth 14 crore.

Rajasthan:

A group, engaged in the business of gems and jewellery, hospitality, and real estate - came under the IT department's radar, following which a search operation took place covering more than three dozen premises located in Jaipur and Kota. The department found and seized a large number of incriminating documentary and digital evidences.

FinMin stated that the analysis of seized evidences of real estate business reveals that the group has been indulging in large-scale tax evasion by accepting on-money in cash on the sale of residential dwellings and land which has not been recorded in the regular books of account. Further, evidences pertaining to the out-of-books sale of gems and jewellery were also unearthed during the search.

Also, the analysis revealed that the unaccounted income so earned has been invested in land, construction of a luxury hotel, and has also been used in financing cash loans.

The seized evidences contain details of interest income earned on these cash loans which have not been recorded in the books of account, it added.

Under the investigation, the group is found to have indulged in generating unaccounted income exceeding 150 crore. So far, the search operation has resulted in the seizing of unaccounted assets worth more than 11 crore.

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