SHILLONG, Oct 8: The Income Tax Department recently carried out search and seizure operations in Shillong, Guwahati, Rangia, Kolkata and Patna, and raided two groups engaged in cement manufacturing and railway contracts execution in the North East and West Bengal.
The searches were conducted on October 5, covering 15 premises, a statement from the Ministry of Finance said.
During the search action, it was found that the group involved in cement manufacturing generated unaccounted income by indulging in out-of-books sales and booking bogus expenses. This unaccounted income is laundered back into the business through shell companies, the statement said.
“Evidences found during the search revealed that many paper companies are run by the group to provide accommodation entries to its flagship concern. These paper companies were found to be non-existent at their given addresses,” it added.
The group was also found to be wrongly showing tribal individuals as creditors, such amounts being to the tune of around Rs 38 crore. “Details of certain offshore entities/ bank accounts were found during the search, which are apparently not declared in the relevant returns of income,” it claimed.
The team also recovered incriminating documents, loose sheets and digital evidences indicating undisclosed investments in land and properties during the raid on the other group which was allegedly engaged in railway contracts execution. “Large number of sale deeds pertaining to land and properties have been found, the valuation whereof could be in excess of Rs. 110 crore,” it said.
During the search, corroborative evidence could not be produced to explain the source of acquisition of the assets. Documents containing details of cash transactions amounting to more than Rs. 13 crore in the sale of properties were also found.
