Sleuths of Income Tax Department have detected undisclosed income of Rs 250 crore after it raided two groups engaged in cement manufacturing and railway contracts execution in Northeast and West Bengal.

IT department sleuths conducted searches on October 5 and October 6 in Kolkata, Guwahati, Rangia, Shillong and Patna.

“These search and seizure actions resulted in detection of undisclosed income in excess of Rs 250 crore. Unaccounted cash of more than Rs 51 lakh has been seized,” the Central Board of Direct Taxes (CBDT) said in a statement on Friday.

Nine bank lockers have been put under prohibitory orders and are yet to be operated, it said.

The CBDT said the group “generated unaccounted income by indulging in out-of-books sales and booking bogus expenses.”

“This unaccounted income is laundered back into the business through shell companies,” it said.

Many paper companies are run by the group to provide accommodation entries (bogus business account entries) to its flagship concern, the statement said.

“These paper companies were found to be non-existent at their given addresses. During the search, incriminating evidence indicating bogus unsecured loans, bogus commission paid, bogus share premium received through shell companies etc. was also found,” it claimed.

The group, it said, was also found to be wrongly showing tribal individuals as creditors, such amounts being to the tune of around Rs 38 crore.

“Details of certain offshore entities/ bank accounts were found during the search, which are apparently not declared in the relevant returns of income,” it claimed.

The second group is actively engaged in executing railway contracts in Assam, Mizoram and other parts of the Northeast, it said.

“Large number of sale deeds pertaining to land and properties have been found, the valuation of which could be in excess of Rs 110 crore. During the search, corroborative evidence could not be produced to explain the source of acquisition of these assets,” the CBDT claimed.

According to CBDT, documents containing details of cash transactions of over Rs 13 crore in the sale of properties have been found.


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