Income Tax Department searches in Punjab and Haryana, unaccounted cash worth Rs 1.70 crore recovered

New Delhi: The Income Tax Department on Wednesday (September 8, 2021) conducted a search and seizure operation on three major commission agent groups based in Punjab. Raids were conducted at several locations in Punjab and Haryana.

The IT department said that apart from the business of commission agents, these groups are also engaged in the business of running steel rolling mill, cold storage, general mill, jewelery shop, poultry, rice mill, oil mill, flour mill.

Search operations revealed that these groups were hiding their business receipts and exaggerating expenses.

“They also do not keep track of most of the amounts received and paid in cash. Besides, some documents showing payment in cash in acquisition of immovable properties have been recovered and confiscated. In one group, it was found The IT department said in a statement that the fruits have been procured at low cost, while the sale has been done at very high rates in the odd period after keeping the goods in cold storage.

The government agency also listed the following key findings:

1. Books of accounts (kacha ledger) have been found in Laddu script, which shows unaccounted transactions running into crores. These books of accounts are being decrypted with the help of an expert. Parallel sets of accounts of some business establishments have also been found showing suppression of gross business receipts running into crores on an annual basis.

2. It has been found that farmers are given an advance amounting to crores of rupees and charged interest rate of 1.5% to 3.00% per month. Interest is received in cash and is not shown in the books of account.

3. Cash purchase and sale related to poultry business and Rs. 9 crores has been detected. Unaccounted purchases worth Rs 1.29 crore have been found from a complex in Jalandhar. Details of unaccounted sales have also been found.

4. Two suspected benami firms have been detected in the name of employees, whose turnover is crores of rupees annually.

5. In a concern, the principal assessee has admitted that the payments in contravention of section 40A(3) of the Income-tax Act, 1961 have been made in crores over the years, after apportioning the same, by accounting for the same. Account books.

6. Discrepancy has been noticed in the stock of finished goods in Steel Rolling Mills and the work of taking stock of raw material (scrap) is in progress. So far, unaccounted stock of finished goods worth more than Rs 25 lakh has been cleared.

7. Unaccounted investment in immovable property amounting to Rs. 3.40 crore has been traced and also accepted by the owners of the properties covered during the searches.

8. Digital evidence found in some premises has been confiscated, which is under analysis.

9. Diversion of business funds in the form of interest free loans/advances to the family members of a single group has been traced by the search team.

10. Unaccounted cash of Rs 1.70 crore has been found in these groups. Unexplained jewelery worth Rs. 1.50 crore has been received. Unexplained stock of flour worth Rs 1.50 crore has also been found. Eight bank lockers have been banned, which are being operated.

The IT department said that the search operation is still on and further investigation is on.

Income Tax Department search in Ahmedabad

The Income Tax Department had also launched a search and seizure operation on a group based in Ahmedabad on September 8. The group is one of the leading business houses of Gujarat, mainly engaged in media and real estate sectors. The group’s media arm comprises electronics, digital as well as print media while the real estate arm covers affordable housing projects and urban civic infrastructure. More than 20 complexes were involved in the operation.

During the search operation, the IT department said that a large number of incriminating documents, loose sheets, digital evidence etc. were found and seized, containing detailed records of unaccounted transactions of the group, spread over several financial years.

“Most of these evidences indicate large unaccounted cash receipts of over Rs 500 crore on sale of transferable development rights (TDR) certificates. Evidence of on-money transactions in real estate projects and land deals, over Rs 350 crore Along with the corroborated documents have also been found. Evidence of unaccounted cash-based loans and interest payment/repayment of more than Rs 150 crore has also been found, the IT department said in a statement.

It states that so far there is cash in excess of Rs. 1 crore and jewelery amounting to Rs. 2.70 crores have also been seized from various premises. Overall, the search and seizure operation has resulted in the detection of unaccounted transactions of more than Rs. 1,000 crores spread over various assessment years so far.

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