Multiple raids at the leading coal traders places by the Income Tax (IT) department across 21 locations in Assam and Delhi has exposed a tax fraud of over Rs 150 crore. The raids started on Friday from Guwahati, Digboi and Margherita in Assam and the IT department continued the raid at several places in Delhi, the government said in a statement on Monday.
The raid was initiated due to the allegation against the coal traders that they had routed accommodation entries of more than Rs 85 crore in the form of non-genuine share capital and unsecured loans through certain Kolkata-based shell companies. All this was done by suppression of true net profit. “It has been established that the group engages in out of book transactions. Handwritten documents/diaries regarding cash transactions have been recovered which are not reflected in the regular books of accounts,” the government statement said.
“Such transactions detected so far across all the locations combined are upwards of Rs 150 crore, of which payments made of a total of more than Rs 100 crore have been found to be violative of various sections of the Income Tax Act, 1961. Such seized documents are voluminous and are being investigated further,” it added. Cash Loan transactions more than Rs 10 crore has been found. Stock difference of Rs 7 crore was found and no proper explanation regarding the same was provided by the traders. Unexplained cash of approximately Rs 3.53 crore has also been found during the raids. During the demonetization period, some Cash investments in share capital made were also found. Further investigations are on about the fraudulent activities.
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