The CBDT on Tuesday claimed that the Income Tax Department has seized "incriminating evidence" that shows alleged financial irregularities of Rs 700 crore after it raided a West Bengal-based steel products manufacturing group.
The raids were carried out last week on September 17 at a total of 25 premises, including the residences of the promoters and the offices and factories of the company in Kolkata, Durgapur, Asansol and Purulia, it said.
Evidences gathered, it claimed, pertain to generation of "unaccounted income" by the group by way of unaccounted cash sales, unaccounted cash expenditure, purchase from bogus parties, under-reporting of actual production, cash purchases of scrap, several documents of land purchases and sale.
Utilisation of the unaccounted income in the form of unsecured loans and sale of shares of shell entities though layering of the unaccounted income has been found, the Central Board of Direct Taxes (CBDT) said in a statement.
"A large number of property documents pertaining to one of the members of the group, showing land and property holding in different names, have also been seized," it said.
The total amount of such "incriminating evidences" pertaining to the manufacturing group exceeds Rs 700 crore, the statement added.
Unaccounted cash of Rs 20 lakh has been seized while two lockers remain to be operated, the statement said.
An accommodation entry provider, who carries out illegal funds transfer through bank accounts, was also raided, it said.
"From his secret back office, incriminating documents pertaining to providing accommodation entries through modes like sale of shares of shell companies, unsecured loans from shell entities, bogus billing have been found," it said.
"The total amount runs into several hundreds of crores of rupees," it claimed.
The board said about 200 companies/entities having over 200 bank accounts being managed from the entry operator's premises have been found.
On the basis of preliminary examination of these documents, it appears that these bank accounts and entities have been used as conduit to route the unaccounted income of many beneficiaries, it alleged
