E-Paper
IT dept detects ₹130-cr after raids on cycle, immigration firms in Punjab
Searches on the entity engaged in cycle trade were carried out on October 21; unaccounted cash of ₹2.25 crore and gold worth ₹2 crore were also seized during these raids
The income tax department (IT dept) detected undisclosed income of about ₹130 crore after it recently raided two Punjab-based businesses, one engaged in cycle trade and the other in providing immigration and visa services to students, the Central Board of Direct Taxes (CBDT) said on Tuesday.
Searches on the entity engaged in cycle trade were carried out on October 21. “The action led to detection of unaccounted income of about ₹150 crore,” the CBDT, which frames policy for the tax department, said in a statement. Unaccounted cash of ₹2.25 crore and gold worth ₹2 crore were also seized during these raids, it said.
“The group has been found to be involved in suppression of income by showing bogus intra-group transactions within group concerns,” the CBDT said, adding that “the group was also found to have been involved in receiving a substantial part of sale consideration in cash and thereby, suppressing the turnover”.
The “seized documents” reveal suppression of turnover of around ₹90 crore per annum by a group concern of the cycle business, and “incriminating” documents related to undisclosed sale of scrap were also seized.
The second group is based in Jalandhar and is engaged in providing immigration and study visa related services to students. Raids on this group were carried out on October 18. “The searches found that the group used to charge a package, ranging between ₹10 lakh to ₹15 lakh per student, depending on the country where the student wished to pursue education,” the CBDT said.
“Almost the entire receipts of the group, aggregating to more than ₹200 crore in the last five years are in cash,” it said. It was also found that the bank accounts of the employees were used to receive money, which was subsequently withdrawn in cash, the CBDT added.
The statement said “profit earned from such receipts was never disclosed in the income tax returns (ITRs) filed.” “Only the commission received from foreign universities has been shown as receipts in the ITRs by the members of the group,” it said. Unaccounted income of about ₹40 crore has been detected and ₹20 lakh cash and jewellery of ₹33 lakh has been seized, the statement said.
