I-T dept detects unaccounted sales worth Rs 400 cr after raids on Haryana group

NEW DELHI, Jan 17: The Income Tax department has found that a Haryana-based group engaged in manufacturing plywood and inverters and in other businesses has “suppressed” sales worth Rs 400 crore over the last three years, the CBDT said on Monday.
The department claimed to have found this after raids were carried out on more than 30 premises of the unidentified group, also involved in manufacturing vehicle batteries and in lead refining, in Yamuna Nagar, Ambala, Karnal and Mohali on January 11.
“Incriminating documents and digital evidences have been seized in relation to entities of plywood business.
“These include a parallel set of books of account recording the entries of cash transactions of purchase, sale, payment of wages, and other expenses of group entities, in addition to transactions of investment in immovable properties,” the Central Board of Direct Taxes (CBDT) said in a statement issued here.
The group is involved in the generation of cash by “suppression of sales” to the extent of about 40 per cent of the actual sales, the policy-making body for the tax department said.
“The preliminary analysis of incriminating evidence indicates that this group has suppressed sales to the tune of Rs 400 crore in the last three years,” it claimed.
In the case of the battery manufacturing concern, documents related to payment of wages and purchase of raw materials “in cash” aggregating to Rs 110 crore were seized and this has not been recorded in the books of account.
“In the case of battery manufacturing as well as lead refining concerns and its related entities, suspicious purchases exceeding Rs 40 crore from non-existent concerns have also been identified.
“The correlation of this evidence has also revealed that unaccounted cash so generated is systematically invested in the acquisition of immovable properties of key persons of plywood and lead refining businesses,” the CBDT claimed.
Unaccounted cash of more than Rs 6.60 crore and jewellery of Rs 2.10 crore have been seized and 22 bank lockers have been put under restraint, it said. (PTI)