IT Dept. Raids on a prominent Transmission Tower manufacturing group in West Bengal

The Income Tax Department carried out a search and seizure operation on 24.08.2022 on a prominent Kolkata based group, engaged in manufacturing of Power Transmission & Distribution (T&D) Structure, Steel Structures, Steel ERW Pipes and Polymer products, etc. The search action covered 28 premises spread over West Bengal and Jharkhand.

Various strategies used by the gang to evade taxes were discovered during the search operation. Numerous incriminating documents and digital data showing the recording of fictitious expenses and concealed cash sales have been discovered. Additionally, evidence of the usage of unaccounted funds for the purchase of real estate as well as unaccounted cash loans, among other things, has been discovered and seized.

According to a preliminary study of information that has been obtained, the gang has used a number of shell firms to enable access to its flagship operations. It has been discovered that these shell companies used share capital or unsecured loans to reroute the undeclared funds into the group’s company. A web of several shell businesses used by an entry operator to make lodging entries totaling more than Rs. 150 crore have also been found.

The search action has, so far, led to detection of total unaccounted income of more than Rs. 250 crore.

Further investigations are in progress.