The Income Tax Department carried out a search operation on 03.08.2022 on two major groups engaged in the manufacturing of steel TMT Bars.
The search operation covered more than 30 premises spread over Jalna, Aurangabad, Nashik and Mumbai.
During the course of the search operation, several incriminating evidences have been found and seized.
The initial analysis of seized evidences of both the groups has revealed that they were engaged in large scale tax evasion, resorting to inflation of expenditure through bogus purchases from several entities.
These entities have also been found to be involved in GST frauds.
Evidence has also been found of excess stock of raw materials, not recorded in the books of account, exceeding Rs. 120 crore.
Examination of evidences in one of the groups further reveals that it has indulged in layering its unaccounted income through bogus unsecured loans and share premium, obtained from Kolkata based shell companies.
The search team has also detected large number of lockers of both the groups, opened in the names of employees of the companies, which were maintained with a Co-operative Bank.
During the search operation, more than 30 bank lockers, including several lockers in the Co-operative Bank, were searched. Huge unaccounted cash and gold jewellery has been found and seized from these lockers.
Furthermore, substantial amount of unaccounted cash has been seized from a secret room located on the farm house belonging to one of the groups.
So far, the search operation has resulted in seizure of unaccounted cash of Rs.56 crore, and bullion and jewellery worth Rs. 14 crore.
Further investigations are in progress.
In another search, the Income Tax Department team carried operation on 03.08.2022 on a Jaipur based group, engaged in the business of gems and jewellery, hospitality and real estate.
The search operation has covered more than three dozen premises located in Jaipur and Kota.
During the course of the search, large number of incriminating documentary and digital evidences have been found and seized.
The analysis of seized evidences of real estate business reveals that the group has been indulging in large scale tax evasion by accepting on-money in cash on the sale of residential dwellings and land which has not been recorded in the regular books of account.
Further, evidences pertaining to out-of-books sale of gems and jewellery were also unearthed during the search.
The search also revealed that the unaccounted income so earned has been invested in land, construction of luxury hotel and has also been used in financing cash loans. The seized evidences contain details of interest income earned on these cash loans which has not been recorded in the books of account.
A preliminary investigation indicates that the group has indulged in generation of unaccounted income exceeding Rs. 150 crore.
So far, the search operation has resulted in seizure of unaccounted assets exceeding Rs.11 crore.
Further investigations are in progress.
