The Income Tax Department has detected a black money trail to the tune of Rs 250 crore in a search and seizure operation in the case of two major manufacturers of refined lead, lead alloys and lead oxides in West Bengal and Uttar Pradesh, according to information provided by the finance ministry.
The tax raids, carried out on Dec 7 covered 24 premises spread across the two states, also resulted in the seizure of jewellery valued at Rs. 53 lakh. Four bank lockers have been sealed and more unaccounted cash and jewellery is expected to be detected.
Incriminating evidence in the form of physical documents and digital data indicating unaccounted cash investments made in immovable properties has also been found and seized.
During the search and seizure action, it has been found that these groups are involved in the suppression of taxable income by resorting to bogus purchases and inflation of purchases.
“Investigations have categorically revealed that these two groups have booked bogus purchases of around Rs. 250 crore in the name of various individuals, proprietary concerns and companies,” according to the official statement.
Evidence gathered during the search operation further reveals that stock registers, transport documents, e-way bills etc. have been fabricated to make such bogus purchases. Several accommodation entry providers have admitted that they have supplied bogus bills without supply of material.
The analysis of documents seized from the business premises of one of the groups indicates the modus operandi of over-invoicing during the purchase of raw material in a systematic manner. The differential amount is received back in cash by the key persons of the assessee group. One of the employees of the group has admitted that invoices have been inflated by charging higher prices applicable to better quality of goods than the goods actually supplied.
Further investigations are still in progress.
