Sun, 25 Oct 2020

New Delhi [India], September 26 (ANI): The Income Tax Department carried out search and survey operations on Friday, September 25, at around 20 residential and business premises of a prominent group engaged in trading of various commodities, production of vanaspati ghee, real estate, and tea estates, which have operations in Jharkhand and West Bengal.

"During the search substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses and cash advances received and interest having been paid in cash, have been found. Further, cash has been found to have been introduced in the group shell companies, which has been advanced as a loan to the real estate company," said the official release issued by the Central Board of Direct Taxes.

It said that most of the companies under the group have family members as directors and do not have any real business and very few returns of income have been filed.

"Most of the returns with ROC have also not been filed. One such group company has no business since 2014, although it has shown sales of Rs 7 crore in cash. This cash has been deposited in bank accounts in Kolkata, whereas cash sale is shown in books to buyers from Jharkhand," said the release.

During the search, hard disks, pen drives and handwritten diaries have also been seized.

"Certain handwritten diaries found indicate giving and taking of loans in cash and out of books receipt of cash on account of booking of commercial space in the real estate project. Evidence of out of books cash payments to contractors and fictitious payments to a dummy contractor have also been found. The project cost recorded in books has been found to be understated, as evidence of out of book cash expenses for construction has been found," it added.

The statement further said that as per preliminary estimates, evidence of cash transactions of around Rs 40 crore has been found, and advances received for the real estate project of around Rs. 80 crore are also under examination.

"Further investigations are going on," the release said.(ANI)

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