Income Tax Department conducts searches in Punjab on group is engaged in Cycle business

Income Tax Department conducts searches in Punjab on group is engaged in Cycle business

Deepak Gupta | Oct 26, 2021 |

Income Tax Department conducts searches in Punjab on group is engaged in Cycle business

Income Tax Department conducts searches in Punjab on group is engaged in Cycle business

The Income Tax Department conducted search and seizure operations in the cases of two Punjab-based groups.

In the case of the first group, the search was launched on October 21, 2021. This organisation is in the cycle business. The group was discovered to be involved in income suppression by displaying bogus intra-group transactions within group concerns. The group was also discovered to have been involved in receiving a significant portion of the sale consideration in cash, thereby suppressing turnover. The seized documents reveal that a group concern suppressed a turnover of around Rs. 90 crore per year. Documents relating to the unreported sale of scrap metal have also been seized.

The search also turned up undisclosed investments in real estate by group members.

The search operation resulted in the discovery of approximately Rs. 150 crore in unaccounted income. In this group, the search action resulted in the seizure of unaccounted cash worth Rs. 2.25 crore and unaccounted gold worth Rs. 2 crore.

The second group, based in Jalandhar, specialises in immigration and study visa services for students. The search action in this group began on October 18, 2021.

According to the results of the search, the group used to charge a package ranging from Rs.10 lakh to Rs.15 lakh per student, depending on the country where the student wanted to pursue education. Almost all of the group’s receipts, totaling more than Rs. 200 crore in the last five years, have been in cash. It was also discovered that the employees’ bank accounts were used to receive money, which was then withdrawn in cash. The profit made from such receipts has never been reported on income tax returns. Only the commission received from foreign universities has been reported as a receipt in the members’ income tax returns.

The search operation resulted in the discovery of approximately Rs. 40 crore in unaccounted income. The search action also resulted in the seizure of Rs. 20 lakh in unaccounted cash and Rs. 33 lakh in unaccounted jewellery.

Both groups are conducting additional research.

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