Income Tax Department conducts search and seizure operations in Haryana

Income Tax Department conducts search and seizure operations in Haryana On 11.01.2022, the Income Tax Department conducted a search and seizure operation on a diversified business group that manufactures plywood/plyboard, MDF board, inverter and vehicle batteries, and refines lead. The search effort encompassed more than 30 locations across the cities of Yamuna Nagar, Ambala, Karnal, and Mohali. Various damning documents and digital data in reference to plywood company organisations were discovered and seized during the search operation. These contain a separate set of books of account that record the cash transactions of purchase, sale, wage payment, and other expenses of group entities, as well as transactions of immovable property investment. These evidences have clearly shown the group's modus operandi, which is to generate income through the concealment of sales to the tune of around 40% of actual sales. According to early review of incriminating data, this organisation has hidden sales worth Rs.400 crore over the last three years. The search team discovered incriminating evidence in the case of a battery manufacturing company, including cash payments of salary and raw material purchases totaling Rs.110 crore that had not been documented in the books of account. Suspicious transactions surpassing Rs.40 crore from non-existent firms have also been detected in the instance of battery manufacturing and lead refining concerns and their linked entities. This evidence has also revealed that unexplained cash is systematically invested in the acquisition of immovable properties of key figures in the plywood and lead refining industries. The search operation resulted in the discovery of undeclared cash totaling more than Rs.6.60 crore, as well as jewellery worth Rs.2.10 crore. There are a total of 22 bank lockers that have been placed under lockdown and are yet to be used. More research is being carried out.