IT searches in Assam unearth undisclosed income of Rs 100 crore

New Delhi, December 26, 2020

An Income Tax search and survey operation in the premises of three leading contractors of North Eastern India at 14 locations in Guwahati, Delhi, Silapathar and Pathsala (Assam) on December 22 has unearthed undisclosed income of approximately Rs 100 crore, an official press release said today.

The main allegations against the three groups were that they have taken accommodation entries in the form of non-genuine unsecured loans and also securities premium from Kolkata-based shell companies.

The three groups had suppressed their net profits across the years and routed back into business the unaccounted income through entry operators based out of Guwahati and Kolkata, the release said.

"During the course of the search, it has been established that the shell companies from which loans/ premium had been taken exist only on paper and have no real business and creditworthiness. The entry operators, on being questioned, have admitted that the unsecured loans/share premium from the shell companies to the groups were non-genuine and bogus. Evidence of the cash trail of routing of funds through securities premium was unearthed during the search. It was established that amounts to the tune of about Rs 65 crore were routed back into regular books involving shell companies which represented unaccounted income of the group. Further investigation was on to detect the actual quantum involved in tax evasion using this modus operandi," the release said.

It was revealed that one of the groups engaged in huge cash transactions in the hospitality business of proportions as high as 50%. Some of the entities of the groups engage in purchases of jewellery in cash. The source of the cash purchases was under examination.

"Till now, jewellery to the tune of Rs 9.79 lakh has been seized. The sources of acquisition of remaining jewellery found exceeding Rs 2 crore were under verification. Cash of Rs 2.95 crore has also been seized. Overall, undisclosed income to the tune of approximately Rs. 100 crore has been unearthed so far during the search and survey operation. One locker has been found, which was yet to be operated. Further investigations were under progress," the release added.

NNN