Jharkhand: I-T dept raids unearth Rs 2 cr in cash, Rs 100 cr unaccounted investments

Following a series of search and seizure operations on 50 properties in several states, the income tax department of Jharkhand was able to seize Rs 2 crore in cash and Rs 100 crore in unaccounted investments and transactions, and a total of 16 bank vaults have been restrained.

On November 4, 2022, these raids were conducted against a few business organisations involved in the selling and transportation of coal, the performance of civil contracts, the extraction of iron ore, and the production of sponge iron. Two politically exposed individuals and their connections were among those who were searched. More than 50 locations across Ranchi, Godda, Bermo, Dumka, Jamshedpur, Chaibasa, Patna, Gurugram, and Kolkata were searched. The search operation resulted in the discovery of a significant amount of digital evidence and incriminating documents.

According to a preliminary study of this data, these organisations have used a variety of methods for evading taxes, such as inflating expenses, making cash loans, receiving payments in cash, and suppressing production. Additionally, it was discovered throughout the search that investments in immovable property had been made, the source of which could not be adequately explained.

The Central Board of Direct Taxes (CBDT) stated that the search operation also turned up the fact that one of the groups involved in civil contracts wasn’t keeping regular books of account. The company has been inflating its costs by engaging in phoney transactions to buy raw materials and pay subcontract expenses all at once at the conclusion of the fiscal year.

Additionally, evidence recovered revealed that illegal monetary payments had been made to gain contracts.

According to the CBDT statement, an unaccounted stock of iron ore with a significant value has been discovered but has not yet been quantified in the case of the other group involved in coal trading, iron ore mining, etc. By layering the transactions through shell companies, the aforementioned gang has also introduced its unaccounted money in the form of unsecured loans and share capital. According to the statement, professionals connected to this group acknowledged that they had signed the audit report created by the organization’s accountant without carrying out proper due diligence and without verifying any supporting documentation.

The CBDT statement also said that further investigations were in progress.