Delhi. Income Tax Department launched search and seizure operation on 22.12.2023 in the case of a group engaged in manufacturing of wires and cables and other electrical items. Some authorized distributors of the group were also included in the search operation. This search action was carried out in more than 50 premises located in Mumbai, Pune, Aurangabad, Nashik, Daman, Halol and Delhi.
During the search operation, a large amount of incriminating evidence in the form of documents and digital data was found and seized. This evidence reveals the modus operandi of tax evasion adopted by the group in collusion with some authorized distributors. Preliminary analysis reveals that the lead company was indulging in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transportation and sub-contracting expenses etc. to hide its taxable income.
Credible evidence recovered during the search has established that the lead company has embezzled approximately Rs 1,000 crore. Unaccounted cash sales have been made which have not been recorded in the books of accounts. Evidence of unaccounted cash payments of over Rs 400 crore made by the distributor for purchasing raw materials on behalf of the lead company has also been seized. Further, the evidence seized from the premises of the lead company has also identified non-genuine expenditure aggregating to approximately Rs 100 crore in the form of sub-contract expenditure, procurement and transportation expenditure etc.
The search action also resulted in unearthing of unexplained transactions undertaken by the distributor for issuing bills without actual supply of goods, whereas such goods have been sold in the open market for cash. Thus, the Authorized Distributor facilitated certain parties to increase their purchase accounts, aggregating to approximately Rs 500 crore. Are. This distributor exclusively sells the products of the major company.
During the search operation, unaccounted cash worth more than Rs 4 crore was seized and more than 25 bank lockers were frozen.
