Income Tax dept conducts raid in Delhi, West Bengal in separate operations

The Income Tax Department posted today that it initiated search action on November 24, 2021 on a taxpayer in Delhi and on a prominent Kolkata-based Group on December 1, 2021.

The Delhi taxpayer is found to have created a beneficiary trust and an underlying company in low tax overseas jurisdiction. The residence and business premises of the assessed were covered in the search action.

The search operation revealed that these undisclosed entities in low tax overseas jurisdictions were holding assets worth Rs 40 crore in the form of immovable and movable assets.

The taxpayer was availing handling services of a foreign Bank having branches in India that offers wealth management, financial planning, asset allocation, equity research, fixed income, investment strategies and fiduciary services.

The Kolkata-based group is engaged in manufacturing of TMT Bars and structural construction materials etc. on December 1, 2021. The search action covered more than 20 premises spread over West Bengal and Odisha, according to the Ministry of Finance.

 A preliminary analysis of this evidence reveals that many paper/shell companies are run by the group to provide accommodation entries to its flagship concerns.

The search action has resulted in seizure of unaccounted cash of Rs 75 lakh and jewellery valued at Rs. 2.26 crore while certain bank lockers have been placed under restraint. The search action, so far, has led to the detection of total unaccounted income of around Rs. 100 crores.    

Investigations are still in progress in both the cases, the Ministry of Finance mentioned in two different statements released today.

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