The searches were carried out last week, September 17, in a total of 25 premises, including the homes of developers and the company’s offices and factories in Kolkata, Durgapur, Asansol and Purulia, he said.
The evidence gathered, he asserted, relates to the generation of “unrecorded revenue” by the group through unrecorded cash sales, unrecorded cash expenses, purchases from fake parties, from an underreporting of actual production, cash purchases of scrap metal, multiple ownership documents, purchases and sales.
The use of unrecognized income in the form of unsecured loans and the sale of shares of fictitious entities by overlaying unrecognized income has been discovered, the Central Commission on Direct Taxes (CBDT) said in a statement.
“A large number of property documents belonging to one of the members of the group, showing land and properties held under different names, were also seized,” he said.
The total amount of this “evidence against” concerning the manufacturing group exceeds ??700 crore, the statement added.
Unaccounted for cash of ??20 lakh were seized while two lockers remain to be exploited, according to the statement.
A hosting provider, which transfers illegal funds through bank accounts, has also been raided, he said.
“From its secret back office, incriminated documents regarding the provision of hosting entries through means such as the sale of shares of shell companies, unsecured loans of shell entities, false invoices were found” , did he declare.
“The total amount is several hundred crore rupees,” he said.
The board said that around 200 companies / entities with more than 200 bank accounts managed from the premises of the entry operator have been found.
Raid on textile group
On top of that, the CBDT detected black silver worth hidden crore overseas after raiding a prominent trade group involved in the manufacture of textile yarns and filaments.
The searches launched on September 18 are continuing on the premises of the group, in particular its headquarters in Delhi, Punjab and Kolkata.
“The group kept unaccounted for funds of approximately ??350 crore in its overseas bank accounts and also redirected those funds to its operations through shell entities in tax havens, ”the CBDT said in a statement.
“The modus operandi detected was linked to the investment by foreign entities, under the control of the group, in bonds convertible into currencies, issued by its main company, and subsequently under the guise of default, converting them into shares of society, ”he added.
He said there are many “incriminating” documents, loose sheets, diaries, digital evidence, etc. the tax service.
“Substantial evidence of off-ledger transactions, cash transactions in land deals, false expenses debited from the ledgers, unrecorded cash expenses, and accommodation entries taken by operators of entry have been gathered, ”he said.
The CBDT said the department discovered that “foreign companies and trusts are receiving management fees for handling unrecorded funds.”
“Although there is a specific disclosure requirement for foreign assets held / managed in the form of corporations and bank accounts in Schedule FA of income tax returns, the group has not disclosed the same to the department,” he asserted.
He said that “account details relating to unexplained personal cash expenses have been meticulously kept in one of the main offices of the company.”
The statement said the ministry had gathered “evidence” that the cash of about ??100 crore was generated by debiting “fictitious expenses” from company accounts and cash transactions from land transactions.
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