The Income Tax Department on Wednesday conducted search operations on three prominent commission agent groups based in Punjab, covering many premises across Punjab and Haryana.
These groups are also engaged in the business of running steel rolling mill, cold storage, general mills, jewellery shop, poultries, rice mills, oil mill, flour mill apart from the business of commission agents, said Central Board of Direct Taxes (CBDT).
“The search action revealed that these Groups are suppressing their business receipts and inflating expenses. They also do not account for most of the sums received and paid in cash. Further, certain documents showing payments of money in cash in acquiring immovable properties have been recovered and seized. In one of the groups, it has been found that the purchases of fruits have been done during the harvest period at low cost, whereas the sales have been done in odd periods at very high rates after storing the goods in cold storage. A similar modus operandi has been found in other Groups,” reads the CBDT statement.
According to CBDT, books of accounts (Kacha Khata Bahi) in Laddo script have been found, which show substantial unaccounted transactions running into crores. These books of account are being deciphered with the help of an expert. Parallel sets of books of accounts of some of the business concerns have also been found which show suppression of gross business receipts running into crores on yearly basis. It is found that advances in cash aggregating to crores are given to farmers and interest rates of 1.5 per cent to 3 per cent per month is charged. The interest is received in cash and not shown in the books of account.
Cash purchase and sale related to poultry business and Rice sheller worth more than Rs 9 crore has been found. Unaccounted purchases amounting to Rs 1.29 crore have been found from one of the premises situated in Jalandhar. Details of unaccounted sales have also been found. In steel rolling mills, discrepancy in stock of finished goods has been found and stock taking of raw material (scrap) is underway. Unaccounted stock of finished goods of more than Rs 25 lakh has been worked out as yet, said CBDT.
“Unaccounted investment in immovable property amounting to Rs 3.40 crore has been detected and has also been accepted by the owners of the properties covered during the search. Unaccounted Cash aggregating to Rs.1.70 crore has been found in these groups. Unexplained jewellery valued at Rs. 1.50 crore has been found. Unexplained stock of Flour valued at Rs 1.50 crore has also been found. Eight Bank lockers have been put under restraint, which is being operated today,” it added.
The search operation is still underway and further investigations are in progress.
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