1 min read.Updated: 08 Oct 2021, 03:03 PM ISTLivemint
One of the groups that had been searched is actively engaged in executing railway contracts in Assam, Mizoram and other parts of the northeast. The search at this group led to detection of undisclosed income of more than ₹250 crore.
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NEW DELHI :
The Income Tax department has detected unaccounted income generated by a cement producer and a railway contractor after searches were held earlier this week across Kolkata, Guwahati, Shillong, Rangia and Patna, said an official statement.
One of the groups that had been searched is actively engaged in executing railway contracts in Assam, Mizoram and other parts of the northeast. The search at this group led to detection of undisclosed income of more than ₹250 crore. Unaccounted cash of more than ₹51 lakh has been seized and nine bank lockers have been put under prohibitory orders, the department said on Friday.
Searches also led to detection of documents indicating undisclosed investments in land and properties in this case, the statement said, adding that a large number of sale deeds relating to land and properties have been found. They are valued to be in excess of ₹110 crore.
In the case of the cement manufacturer, unaccounted income was generated through out-of-books sales and by booking bogus expenses. This unaccounted income is laundered back into the business through shell companies, the department said.
Evidence found during the search showed that many paper companies were run by the group to execute bogus transactions. These paper companies were found to be non-existent at their given addresses.
During the search, evidence indicating bogus unsecured loans, bogus commission paid and bogus share premium received through shell companies were also found, the department said. These indicated that more than Rs. 50 crore may be unaccounted, the tax authority said. Officials have also found details of certain offshore entities and bank accounts during the search, which were apparently not declared in the returns of income, the statement said.