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I-T raid in MP leads to seizure of Rs 2 cr

December 04, 2021 10:07 AM

New Delhi, The Income Tax Department has conducted search and seizure operations on two major business groups of Indore in Madhya Pradesh.

While the first group is engaged in the business of mining, media and providing cable TV services, the second group is running a coaching academy, said a statement issued here.

The search, conducted on November 25, led to recovery of alleged unaccounted cash exceeding Rs 10 crore and seizure of Rs two crore.

The search covered more than 70 premises in Madhya Pradesh and five in other states.

During the course of search action, various incriminating documentary and digital evidence, including a parallel set of financial records of some of the businesses have been found and seized.

A preliminary analysis of these evidences show evasion of taxable income by adopting various malpractices, particularly suppression of sales in mining business," an official statement said.

"Similar large-scale tax evasion has been found in the business of cable TV service. Evidences of other malpractices such as payment of money, suspected benami transactions, unaccounted expenditure incurred in cash, undisclosed investment in immovable properties, etc have also been found," it said.

The group had allegedly taken accommodation entries in the form of bogus unsecured loans exceeding Rs 40 crore from various shell companies managed by entry operators.

"The main entry operator, the key handler, and several dummy directors of the shell companies have been identified, traced and covered during the search operation.

"The dummy directors and key handler have admitted that the companies are merely paper entities, and they are working at the behest of the main entry operator," the statement added.

"Documentary evidence found and seized from the search operation of the coaching group clearly shows suppression of cash receipts from students, which is in excess of Rs 25 crore," it said.

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