The Income Tax Department has detected undisclosed income of over Rs 450 crore after its raided a Madhya Pradesh-based Soya products manufacturing group, the CBDT said on Monday.
The searches were carried out on February 18 at 22 premises located in Betul and Satna (both in Madhya Pradesh), Mumbai and Solapur in Maharashtra, and Kolkata in West Bengal.
“Incriminating evidence in the form of digital media such as laptops, hard drives, pen drives have been found and seized.
“From the investigation so far, undisclosed income of over Rs 450 crore has been detected,” the CBDT said in a statement.
It added that “unexplained” cash of over Rs 8 crore and foreign currency of various countries amounting to more than Rs 44 lakh have been seized after the raids on the Betul-based business group.
Nine bank lockers have also been found during the search, the Central Board of Direct Taxes (CBDT), which frames policy for the tax department, said.
“The group has introduced unaccounted income to the tune of Rs 259 crore by way of introduction of share capital at huge premium from Kolkata-based shell companies.
“The group has also introduced undisclosed income of Rs 90 crore in its books of accounts by way of sale of paper investments in shell companies to another set of shell companies of Kolkata,” the CBDT alleged.
None of the companies, it claimed, was found to be operational at their shown address and the group could not confirm the identity of such paper companies or any of its directors.
“Many of these paper companies were found to be struck off by the Ministry of Corporate Affairs.
“During the search, it was seen that bogus loss to the tune of Rs 52 crore has been claimed by the group to suppress their profits, by indulging in intra-group out-of-exchange contract settlement,” it said.
The CBDT said various companies were formed in the name of employees to carry out these transactions, while there was no actual business carried out between them.
“Directors of these companies were not aware about any such transactions.
“The group has also claimed incorrect Long Term Capital Gains (LTCG) exemption of over Rs 27 crore on sale of shares of a group entity,” the statement said.
Probe found that the purchase of these shares was not genuine as group directors bought shares of this entity at nominal value from non-existent Kolkata-based shell companies, the CBDT alleged.