I-T Dept Conducts Search Operations in Mumbai-based Electric Manufacturing Group
GG News Bureau
Mumbai, 11th Jan. The Income Tax Department initiated search and seizure operations in the case of a group engaged in the manufacturing of wires and cables and other electrical items on 22.12.2023. Some of the authorised distributors of the group were also covered in the search.
During the course of the search operation, a large amount of incriminating evidence in the form of documents and digital data have been found & seized. These evidences reveal modus-operandi of tax evasion adopted by the group in connivance with some of the authorised distributors.
Credible evidence recovered during the search has established that the flagship company has made unaccounted cash sales of around Rs. 1,000 crore which are not recorded in the books of accounts.
Evidence of unaccounted cash payments of more than Rs. 400 crore made by a distributor, on behalf of the flagship company towards purchases of raw materials, have also been seized.
Further, non-genuine expenses in the nature of subcontracting expenses, purchases and transport expenses, etc. aggregating to about Rs. 100 crore have also been identified in the seized evidence from the premises of the flagship company.
The search action also resulted in determination of unexplained transactions undertaken by the distributor for issuing bills without genuine supply of goods whereas such goods have been sold in the open market in cash. Thus, the authorised distributor facilitated certain parties to inflate their purchase accounts, which aggregate to about Rs. 500 crore. This distributor exclusively sells products of the flagship company.
During the course of the search operation, unaccounted cash exceeding Rs. 4 crore, has been seized and more than 25 bank lockers have been put on restraint.
Further investigations are in progress.
