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The Income Tax Department Researches a Major Transmission Tower Manufacturing Group in West Bengal
By GDP Delhi
The Income Tax Department carried out a search and seizure operation on 24.08.2022 on a leading group based in Kolkata, engaged in the manufacture of power transmission and distribution (T&D) structures, of steel structures, ERW steel pipes and polymer products, etc. the action covered 28 locals spread across West Bengal and Jharkhand.
During the search operation, various methods of tax evasion adopted by the group were brought to light. A large body of incriminating evidence in the form of documents and digital data demonstrating the accounting of false expenses and undisclosed cash sales was found. Also, evidence of use of unaccounted cash for real estate acquisition and unaccounted cash lending etc. were also found and seized.
A preliminary analysis of the seized evidence reveals that several front companies were used by the group to provide hosting entries to its flagship companies. It was found that these fictitious entities funneled unaccounted for money back into the group business as share capital/unsecured loan. In addition, hosting entries by an entry operator through a network of numerous front companies aggregating over Rs.150 crore have also been detected.
The search action has, so far, led to the detection of total unaccounted income of over Rs. 250 crores.
Further investigations are in progress.