RANCHI: Days after the Income Tax (I-T) department raided multiple locations in Jharkhand, including those linked to two Congress legislators, their associates, and other premises related to business groups, the Central Board of Direct Taxes (CBDT) on Tuesday claimed that “these groups have resorted to various modus-operandi of tax evasion”.
The agency claimed they recovered undisclosed cash exceeding ₹2 crore and discovered unaccounted transactions and investments exceeding ₹100 crore in the raids. However, the CBDT did not specify what was received directly from the two MLAs---Pradeep Yadav and Jaimangal Singh.
Both legislators have alleged the action was the result of political vendetta by the BJP government at the Centre and the central agency did not unearth anything unaccounted for from their premises.
The CBDT in a statement on Tuesday said that the search operation has led to the seizure of a large number of incriminating documents and digital evidence.
“A preliminary analysis of these evidences indicates that these groups have resorted to various modus-operandi of tax evasion, including inflation of expenses, transactions of loans in cash, payments/receipts in cash, and suppression of production. During the search, it has also been found that investments have been made in immovable properties, the source of which could not be fully explained,” it said.
“The search operation also revealed that one of the groups engaged in civil contracts was not maintaining regular books of account. The group has been inflating its expenses by entering into non-genuine transactions of purchase of raw material/ sub-contract expenses in lumpsum at the fag-end of the year. Evidence seized also suggests that unfair payments in cash have been made to secure contracts,” it added.
{{/usCountry}}“The search operation also revealed that one of the groups engaged in civil contracts was not maintaining regular books of account. The group has been inflating its expenses by entering into non-genuine transactions of purchase of raw material/ sub-contract expenses in lumpsum at the fag-end of the year. Evidence seized also suggests that unfair payments in cash have been made to secure contracts,” it added.
{{/usCountry}}The I-T department on November 4 had raided premises linked to business groups engaged in coal trading, transportation, execution of civil contracts, extraction of iron ore, and production of sponge iron as well as “two politically exposed persons and their associates.”
The searches were carried out at more than 50 premises spread over Ranchi, Godda, Bermo, Dumka, Jamshedpur, Chaibasa, Patna, Gurugram, and Kolkata.
The CBDT in its statement said that in the case of the other group engaged in coal trading, extraction of iron ore, etc, unaccounted stock of iron ore of huge value has been found, which is yet to be quantified.
“The said group has also introduced its unaccounted money in the form of unsecured loans and share capital by layering the transactions through shell companies. Professionals associated with this group have admitted that they had not verified any supporting documents and had signed the audit report prepared by the group’s accountant without due diligence,” it added.