Income tax department conducts searches in Gujarat
Premium- The department has detected unaccounted transactions of more than ₹300 crores
NEW DELHI : The Income Tax Department has carried out a search and seizure operation on a business group primarily engaged in manufacturing and trading of ceramic tiles and has detected unaccounted transactions of more than ₹300 crores, said an official statement.
The search conducted earlier this month covered 36 premises spread across Rajkot, Morbi, Ahmedabad, Raipur, Guwahati, Gurgaon and Kolkata. It also covered persons engaged in providing finance, the statement said.
During the course of the search operation, various incriminating pieces of evidence in the form of documents and digital data have been found, the department said. Initial analysis revealed that the group has allegedly been engaged in large scale tax evasion by adopting various methods, including, by way of unaccounted cash sales outside the books of account, under invoicing of sales and booking of bogus purchases, the department said.
The group has also been found to be involved in alleged layering of unaccounted sums through bogus unsecured loans from related parties and share capital from Kolkata-based shell companies, the department said.
Several pieces of evidence indicated the group’s involvement in routing of unaccounted funds into the regular books of account using accommodation entries provided by a Gujarat based person engaged in providing finance, the department alleged.
So far, the search action has resulted in unearthing of unaccounted transactions exceeding Rs. 300 crore including cash loans of more than Rs. 100 crore, the department alleged. Further investigations are in progress, the statement said.
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