New Delhi (The Hawk): The Income Tax Department reported on Tuesday that recent search and seizure operations on a few business groups engaged in coal trading, transportation, contract execution, iron ore extraction, and sponge iron production in Jharkhand turned up unaccounted transactions and investments totaling more than Rs 100 crore.
The procedure started on November 4. It claimed that two politically exposed people and their associates were subject to searches.
"Unreported cash worth more than Rs 2 crore was seized during the search. There are now 16 bank lockers that are restrained. The searches have so far turned up unaccounted transactions and investments totaling more over Rs 100 crore "I-T department reported.
More than 50 locations across Ranchi, Godda, Bermo, Dumka, Jamshedpur, and Chaibasa in Jharkhand, Patna, Gurugram (Haryana), and Kolkata were searched.
The search operation resulted in the discovery of a significant amount of digital evidence and incriminating documents.
According to a preliminary study of this data, these organisations have used a variety of methods for evading taxes, such as inflating expenses, making payments and loans in cash, and suppressing production.
"Additionally, it was discovered throughout the search that investments in immovable property had been made, the source of which could not be properly explained. One of the groups involved in civil contracts was also found to not be keeping regular books of accounts, according to the search operation. The company has been inflating its costs by engaging in fraudulent transactions to pay for raw materials or subcontract charges all at once at the conclusion of the fiscal year "I-T department reported.
Evidence that was recovered, according to the report, also points to the possibility of illegal monetary payments made to obtain contracts.
The I-T department said that an unaccounted stock of iron ore with a significant value has been discovered in the case of the other group involved in coal trading of iron ore, etc.
By layering the transactions through shell companies, the aforementioned gang has also introduced its unaccounted money in the form of unsecured loans and share capital. Professionals connected to this group have acknowledged that they did not thoroughly check any supporting documents before signing the audit report that the group's accountant had prepared.
There were still open investigations into the situation.
(Inputs from Agencies)
