Income Tax Department conducts searches in West Bengal

The Income Tax Department carried out search and seizure operations on 16.11.2021 on a prominent Kolkata based group engaged in manufacturing of cement and real estate. The search action covered 24 premises spread over Kolkata, Delhi and places in the states of Assam and Meghalaya.

A substantial number of incriminating documents and digital data demonstrating the group’s evasion of a large amount of unexplained money have been discovered and seized. These evidences point to taxable income evasion using a variety of methods, including suppression of production, unaccounted and under-invoicing of sales, inflation of purchasing costs through fictitious parties, and unaccounted cash expenditure. Evidence of a group concern receiving on-money in cash on the selling of flats has also been discovered. Further examination of the collected information demonstrates that the company operates a number of paper firms in order to supply lodging for its flagship concern.

During the search, incriminating evidence was discovered and confiscated, including transactions of unexplained unsecured loans, fake commission payments, and unsupported share capital and share premium obtained through shell companies.

Firms in the group were also discovered to be run in the names of low-income individuals/employees. While these people were getting pitiful wages, these companies were receiving payments in the millions of rupees. These businesses are discovered to be operating out of the group’s factory.

The search operation resulted in the seizure of Rs. 1.30 crore in unaccounted cash. Six bank lockers have been put under lock and key. So far, the search operation has resulted in the discovery of over Rs. 200 crore in unaccounted revenue.

More research is being carried out.