I-T Dept. detects unaccounted transactions worth over ₹220 crore

Two groups were into manufacturing of iron and steel products, coal washery and transportation in Chhattisgarh

December 29, 2021 02:53 pm | Updated 03:04 pm IST - NEW DELHI

Representational Image.

Representational Image.

Income-Tax searches on two groups into manufacturing of iron and steel products, coal washery and transportation in Chhattisgarh have led to the detection of unaccounted transactions worth over ₹220 crore.

The searches were carried out on more than 35 premises spread over Raipur, Korba, Bilaspur and Raigarh.

The I-T Department seized documents containing a parallel set of cash books pertaining to one group. It contained a systematic record of unaccounted transactions of more than ₹200 crore.

Certain entities of this group indulged in suppression of actual production and subsequent unaccounted sales made in cash, which were not recorded in the regular books of account.

“In the case of one such entity, parallel set of books of account evidencing transactions of about ₹50 crore, which are not reflected in the regular books of account, have been found and seized,” said the department. In order to evade tax, the group also arranged bogus purchase invoices from related group entities engaged in transportation as well as from entry providers.

The second group was into various malpractices of tax evasion. It obtained share capital with unsubstantiated share premium and claimed expenses on bogus purchases. “The key person of this group has admitted to an undisclosed income of ₹20 crore. So far, the search action has led to the seizure of unexplained cash and jewellery of more than ₹3 crore,” the department stated.

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