In a major crackdown on tax evaders, the investigation wing of income tax department swooped on commodity traders and members of National Multi-commodity Exchange (NMCE) on Thursday.
The investigation wing has traced money laundering by the traders covered under the joint survey operation of investigation wing of Indore and Ahemdabad.
A total of 25 firms were covered under the survey including those located in Indore, Ahmedabad, Mumbai, Jaipur and Kolkata.
In Indore, four concerns have been covered. They are Essence Commodities at Race Course Road, Manish Agro, Prakash Solvex in Sneh Nagar and MCS Trading Company Private Limited at Panch Ratan Market in Chhota Sarafa.
During the operation, it was found that the business firms which came under survey were clients of commodity traders and members of NMCE. With the help of members of the exchange, these firms projected artificial profits and losses.
The firms came under I-T radar as they showed abrupt fall and rise of profits on paper which according to department officials aroused suspicion. The surveys were on till filing of this report.
This is the third major survey by income tax department's investigation wing in last one week. Two days back, surveys traced evasion of more than Rs 100 crore from M/s Parental Drugs India Ltd.
This survey followed Indore region's move to send Mumbai office a list of business establishments which after having grown big locally shifted registered office to Mumbai in order to remain away from close scrutiny of income tax department and thus avoid paying tax in full.