Income Tax Department conducts searches on Korba Groups Engaged in the Manufacturing of Iron

On December 22, 2021, the Income Tax Department conducted search and seizure operations on two prominent Raipur and Korba groups engaged in the manufacturing of iron and steel goods, coal washery, and transportation, among other things. More than 35 locations in the Raipur, Korba, Bilaspur, and Raigarh districts of Chhattisgarh were searched.

Various damning documents and digital evidence, including a parallel set of cash books, were discovered and seized during the search operation in one of the groups. According to a preliminary examination of these parallel cash books, they show a systematic record of unaccounted transactions totaling more than Rs. 200 crore. According to the evidence gathered, some members of this organization have been found to engage in the concealment of actual production and subsequent unaccounted cash sales that are not documented in the regular books of account. A parallel set of books of account indicating transactions worth roughly Rs.50 crore that were not represented in the normal books of account was discovered and confiscated in the case of one such organization. This organization is also dodging taxes by getting phone purchase invoices from connected group firms engaged in transportation as well as entry suppliers, according to the search team.

The analysis of incriminating documents and other related evidence in the case of another group clearly shows that this group engaged in various malpractices to evade taxes on its income, including obtaining share capital with unsubstantiated share premiums and claiming expenses on fictitious purchases. This group’s main figure has admitted to earning an undisclosed sum of Rs.20 crore.

So far, the search operation has resulted in the recovery of more than Rs. 3 crore in unexplained cash and jewelry.

More research is being carried out.