Jharkhand I-T dept raids unearth Rs 2 cr in cash, Rs 100 cr unaccounted transactions

New Delhi: Jharkhand’s income tax department recovered Rs 2 crore in cash, Rs 100 crore in unaccounted investments/transactions and a total of 16 bank lockers have been put under restraint after a series of search and seizure actions on 50 premises in various states.

These raids were done on a few business groups engaged in coal trading/ transportation, execution of civil contracts, extraction of iron ore and production of sponge iron on November 4, 2022. Those searched include 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 search operation has led to the seizure of a large number of incriminating documents and digital evidence. A preliminary analysis of this evidence indicated 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.

According to the statement of the Central Board of Direct Taxes (CBDT), 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 lump sum at the fag end of the year. Evidence seized also suggested that unfair payments in cash had been made to secure contracts.

The CBDT statement stated 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 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 admitted that they had not verified any supporting documents and had signed the audit report prepared by the group’s accountant without due diligence, the statement added.

The CBDT statement also said that further investigations were under progress.