NEW DELHI, DEC 7
The Central Board of Direct Taxes (CBDT) stated on Tuesday that unaccounted transactions of over Rs 500 crore were discovered when the IT Department searched a Gujarat-based company that manufactures stainless steel and metal pipes last month. On November 23, searches were conducted at thirty locations in Ahmedabad and Mumbai belonging to an unidentified group.
“A large number of incriminating documents, loose sheets, digital evidence etc. have been found and seized. These evidences contain detailed records of the group’s unaccounted income on which due taxes have not been paid,” the CBDT said in a statement.
According to a preliminary analysis of evidence, the group is engaging in “unaccounted sales of products and scrap in cash that are not documented in the ordinary books of account,” according to the policy-making body for the tax department. These documents include detailed records of the group’s unaccounted income that has yet to be taxed.
In addition, incriminating evidence of different malpractices was found, including unaccounted cash loans advanced and interest collected, cash costs, fraudulent expenses and purchases, unaccounted land investments, and so on. Evidence of “misconduct” such as “unaccounted cash loans issued and interest earned thereon, cash costs, bogus expenses and acquisitions, unaccounted land investments, and so on” has also been discovered, it stated. The group obtained massive accommodation entries, bogus business entries in the accounts, to “lower costs,” according to a deleted WhatsApp message of a key participant, the CBDT said.
A number of Benami properties have been discovered. The search operation resulted in the discovery of Rs 1.80 crore in unaccounted cash and Rs 8.30 crore in inexplicable jewellery. 18 bank lockers have been placed under lockdown so far. The search operation resulted in the discovery of unaccounted transactions totalling more than Rs 500 crore.
An investigation into the matter is currently underway.
It further stated that 18 bank lockers had been placed under lockdown. “A total of Rs 500 crore in unauthorised transactions has been discovered as a result of the search effort,” it stated.
