I-T raids Ahmedabad-based steel maker, finds Rs 500 cr hidden income

New Delhi, Dec 7 (Agency) Carrying search and seizure operations on a Ahmedabad-based steel manufacturer, Income Tax (I-T) department has claimed it has detected unaccounted transactions worth over Rs 500 crore. “The search action has resulted in the seizure of unaccounted cash of Rs 1.80 crore and unexplained jewellery valued at Rs 8.30 crore. “So far, 18 bank lockers have been put under restraint. The search action has led to the detection of total unaccounted transactions exceeding Rs 500 crore,” the I-T department said in an official statement. The anti-tax evasion operation initiated on November 23 covered more than 30 premises in Ahmedabad and Mumbai.

As per the I-T department, a large number of incriminating documents, loose sheets and digital evidence were found and seized during the search operation. “These evidences contain detailed records of the group’s unaccounted income on which due taxes have not been paid,” the statement said. The department claimed a WhatsApp chat of a key person detected during the search has revealed evidence of obtaining huge accommodation entries by the group to reduce its taxable income. “A preliminary analysis of evidence indicates that the group is indulging in unaccounted sales of goods and scrap in cash which is not recorded in the regular books of account,” said the statement. “Further, incriminating evidence of various malpractices such as unaccounted cash loans advanced and interest earned thereon, expenses incurred in cash, bogus expenses and purchases, unaccounted land investments etc. has also been unearthed,” it added.