Home / News / India /  Income Tax dept raids in Delhi, West Bengal in multi-crore tax evasion cases
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The Income Tax Department has recently conducted searches Delhi and West Bengal in cases related tax evasion.

In Delhi, the search was conducted late last month at the residence and business premises of a taxpayer who has created a beneficiary trust and an underlying company in low tax overseas jurisdiction. 

An official release, regarding the case, said, the search operation revealed that these undisclosed entities in low tax overseas jurisdictions were holding assets worth 40 crore in the form of immovable and movable assets. 

“The taxpayer was availing handling services of a foreign Bank having branches in India that offers wealth management, financial planning, asset allocation, equity research, fixed income, investment strategies and fiduciary services."

During the search operation at his residence, corroborating evidences in the form of e-mails and documents have been found establishing his beneficial ownership of the foreign assets. In his statement recorded during the search, he has admitted to ownership of foreign assets. 

At the business premises, one hard disk containing data in the form of parallel set of books of accounts has been found. A preliminary analysis of such gathered evidences indicate understatement of domestic income to the tune of Rs. 30 crore from business undertaken in India.

Meanwhile, in West Bengal, the search and seizure operation were conducted early December on a prominent Kolkata-based Group, engaged in manufacturing of TMT Bars and structural construction materials. As many as 20 premises in West Bengal and Odisha were covered during the search operation. 

The action unearthed various methods of tax evasion adopted by the group. A large number of incriminating evidences in the form of documents and digital data demonstrating high value unaccounted cash payments, unaccounted cash purchase and sales, suppression of production, etc. have been found and seized, an official release said 

“A preliminary analysis of these evidences reveals that many paper/shell companies are run by the group to provide accommodation entries to its flagship concerns. These shell entities were found to have routed back their unaccounted money in the guise of share capital/unsecured loan into books of account. Such modus operandi has been admitted by one of the key persons of the group."

The search action has resulted in seizure of unaccounted cash of Rs. 75 lakh and jewellery valued at Rs. 2.26 crore while certain bank lockers have been placed under restraint. The search action, so far, has led to the detection of total unaccounted income of around Rs. 100 crore, 

Further investigations are under progress.

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