The Income-Tax Department has detected unaccounted sales amounting to ₹185 crore during the searches on a Jharkhand-based group engaged in the manufacture and trade of sponge iron and other allied products. The group also has dealership of petrol pumps.
“Search and survey was carried out on more than 20 premises. The group was indulging in the manufacture and sale outside the books and was using an extensive network of shell companies to plough back unaccounted income,” said the agency.
The group's products are used in building construction and other infrastructure projects. The unaccounted production is sold in cash in eastern India. “The cash generated is being ploughed back into the group in the form of share capital and unsecured loans from Kolkata-based shell companies. The money is also invested in the purchase of properties and expensive personal items,” the Department said.
The seized documents indicated that ₹100 crore in unaccounted income routed back at high premiums via the shell entities. The original share certificates issued to them were also found in the company's office premises. “Investigations reveal that the so-called shareholders do not exist,” it said.
The group had also got unsecured loans of about ₹25 crore from the shell firms, apart from bogus commodity profit entries amounting to ₹30 crore. An entry provider and a freight forwarder were also searched during the operation. “These persons were arranging entries through shell companies. Documents indicating such unaccounted entries have been found...,” said the agency.
The Department seized ₹3.07 crore in unaccounted cash and undisclosed bullion/jewellery worth ₹1.28 crore during the search.
