3 min read.Updated: 21 Sep 2021, 03:17 PM ISTLivemint
After raiding a West Bengal-based steel products manufacturing group, the IT-dept that the ‘incriminating evidences’ present exceeds ₹700 crore
It also detected black money worth crores stashed abroad after it raided a leading business group
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The Income Tax department said on Tuesday that it conducted raids at it has seized "incriminating evidence" that shows alleged financial irregularities of ₹700 after a raid at West Bengal-based steel products manufacturing group.
The raids were carried out last week on 17 September at a total of 25 premises, including the residences of the promoters and the offices and factories of the company in Kolkata, Durgapur, Asansol and Purulia, it said.
Evidence gathered, it claimed, pertain to the generation of "unaccounted income" by the group by way of unaccounted cash sales, unaccounted cash expenditure, purchase from bogus parties, under-reporting of actual production, cash purchases of scrap, several documents of land purchases and sale.
The utilisation of the unaccounted income in the form of unsecured loans and sale of shares of shell entities though layering of the unaccounted income has been found, the Central Board of Direct Taxes (CBDT) said in a statement.
"A large number of property documents pertaining to one of the members of the group, showing land and property holding in different names, have also been seized," it said.
The total amount of such "incriminating evidences" pertaining to the manufacturing group exceeds ₹700 crore, the statement added.
Unaccounted cash of ₹20 lakh has been seized while two lockers remain to be operated, the statement said.
An accommodation entry provider, who carries out illegal funds transfer through bank accounts, was also raided, it said.
"From his secret back office, incriminating documents pertaining to providing accommodation entries through modes like sale of shares of shell companies, unsecured loans from shell entities, bogus billing have been found," it said.
"The total amount runs into several hundreds of crores of rupees," it claimed.
The board said about 200 companies/entities having over 200 bank accounts being managed from the entry operator's premises have been found.
Raid on textile group
In addition to this, the CBDT detected black money worth crores stashed abroad after it raided a leading business group involved in the manufacture of textile and filament yarn.
The searches that were launched on 18 September are continuing at the premises of the group including at its corporate offices in Delhi, Punjab and Kolkata.
"The group has maintained unaccounted funds of about ₹350 crore in its foreign bank accounts and has also routed these funds back into its business through shell entities in tax havens," the CBDT said in a statement.
"The modus operandi detected was related to investment by foreign entities, under control of the group, in foreign currency convertible bonds, issued by its main concern, and subsequently under the garb of defaulting on payments, converting it into shares of the company," it added.
It said many "incriminating" documents, loose sheets, diaries, digital evidences etc. were recovered which indicate involvement of the group in routing of "unaccounted" funds back into its Indian entities and possession of foreign bank accounts that were "not reported" to the tax department.
"Substantial evidence of transactions outside the books of accounts, cash transactions in land deals, bogus expenses debited in books of accounts, unaccounted cash expenditure and accommodation entries taken from entry operators have been gathered," it claimed.
The CBDT said the department found that "foreign companies and trusts were being paid management fees for managing the unaccounted funds."
"Though there is a specific requirement of disclosing foreign assets owned/managed in the form of companies and bank accounts in schedule FA in Income Tax Returns, the same has not been disclosed by the group to the department," it alleged.
It said "details of accounts related to unexplained personal expenditure in cash were found to be meticulously maintained in one of the main offices of the company."
The statement said the department has gathered "evidence" that cash of about ₹100 crore was generated by debiting "bogus expenditure" in company accounts and cash transactions in land deals.
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