Income Tax Department conducts searches in Kolkata
Kolkata, March 11, 2021
The Income Tax Department carried out search and seizure operation on Tuesday on some persons based in Kolkata, engaged in the business of electrical equipment and trading of decorative lighting, who were allegedly using various bank accounts for squaring off trade account with Chinese exporters.
"The search action has resulted in unearthing of incriminating evidences (both physical and electronic) where prima facie it has been observed that various bank accounts are being used by these persons for squaring off trade account with Chinese exporters," an official press release said.
According to it, the cases were developed through market intelligence and field enquiries. Search and seizure action was carried out at more than 3 premises in Kolkata in the evening of March 9, it said.
"These products were allegedly not imported at arm’s length price so as to have less impact of customs duty on imported products, thereby reducing the purchase price. Several unaccounted transactions have also been found pertaining to sale of electrical equipment in the domestic market.
"Preliminary enquiry has also indicated that the persons on whom search and seizure operations have been conducted are engaged in clandestine operation, wherein they receive cash, convert them into foreign exchange through individuals engaged in such conversion work (also covered) and through some bank accounts, the amount is transferred to foreign accounts of Chinese exporters who export different kinds of goods to Indian importers. Hence, part of the purchase cost is transferred to the accounts of Chinese exporters through this mode. Various mobile and electronic devices having such communication/evidences have been seized," it said.
The release said unaccounted cash in excess of Rs. 3 crore has been found, which has been seized.
In one more separate action conducted by the Department, Rs. 76 lakh has been seized.
Further investigations are in progress, the release added.