Income Tax Department conducts search operations in West Bengal

Income Tax Department conducts search operations in West Bengal

On 01.12.2021, the Income Tax Department launched a search and seizure operation against a prominent Kolkata-based group that manufactures TMT bars and structural construction materials, among other things. More than 20 locations in West Bengal and Odisha were searched as part of the operation.

The action revealed the group’s many tactics of tax avoidance. A vast amount of incriminating evidences, such as documents and digital data, have been discovered and confiscated, proving high-value unaccounted cash payments, unaccounted cash acquisition and sales, suppression of production, and so on. A preliminary examination of these evidences suggests that the organisation operates a number of paper/shell firms to enable access to its main enterprises. These shell corporations were discovered to have funnelled their undeclared money back into books of account under the pretence of share capital/unsecured loan. One of the group’s major members has admitted to using such tactics.

The search operation resulted in the seizure of undeclared cash worth Rs. 75 lakh and jewellery worth Rs. 2.26 crore, as well as the restriction of certain bank vaults. So far, the search operation has resulted in the discovery of over Rs. 100 crore in unaccounted revenue.

Further investigations are being carried out.

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