I-T dept detects black income of Rs 100 crore after raids on contractors in Assam

The income tax department conducted search and survey action at 14 locations in Guwahati, Delhi, Silapathar and Pathsala in case of three leading contractors in hospitality sector, unearthing evidences of the cash trail of routing of funds through securities premium, and undisclosed income of about Rs 100 crore.

The main allegations against the three groups are that they have taken accommodation entries in the form of non-genuine unsecured loans and also securities premium from dubious Kolkata-based shell companies, the Central Board of Direct Taxes said in a statement Saturday.

“About Rs 65 crore were routed back into regular books involving shell companies which actually represent unaccounted income of the group. Further investigation is on to detect the actual quantum involved in tax evasion using this modus operandi,” the Board said.

The three groups have suppressed their net profits across the years and routed back into business the unaccounted income through entry operators based out of Guwahati and Kolkata, the Board added.

The shell companies from which loans or premium had been taken exist only on paper and have no real business and creditworthiness, it was found during the search. The entry operators, on being questioned, have admitted that the unsecured loans or share premium from the shell companies to the groups are non-genuine and bogus.

It has been gathered during the search action that one of the groups engages in huge cash transactions in hospitality business of proportions as high as 50%, which is under examination.

Some of the entities of the groups engage in purchases of jewellery in cash, the source of the cash purchases are under examination.

Jewellery to the tune of Rs 9.79 lakh has been seized, while the source of the remaining jewellery found exceeding Rs 2 crore is under verification. Cash of Rs 2.95 crore has also been seized. One locker has been found, which is yet to be operated.