IT Dept detects unaccounted transactions of Rs 400 crore after raids on ‘pan masala’ group

The Income Tax Department has detected unaccounted transactions of greater than Rs 400 crore after it raided a north India-based ‘pan masala’ manufacturing group, the Central Board of Direct Taxes (CBDT) mentioned Friday.
It mentioned the searches had been carried out Thursday on 31 premises — Kanpur, Delhi, Noida, Ghaziabad and Kolkata — of the group, additionally concerned in the true property enterprise.
“Preliminary figures indicate unaccounted transactions exceeding Rs 400 crore,” the CBDT mentioned in an announcement, with out figuring out the group.
The Central Board of Direct Taxes frames coverage for the IT Department.

“The group has been earning huge amounts through unaccounted sale of pan masala and through unaccounted real estate business.”
“This unaccounted income was laundered back into the concerns through a vast link of shell companies,” it claimed.
The division additionally discovered over Rs 52 lakh money and seven kg gold through the raids, it mentioned.
It mentioned the motion led to the detection of “nation-wide network of paper companies” during which the administrators the place individuals of “no financial means”.
“Surprisingly, these companies advanced so-called loans and advances to the real estate group amounting to Rs 226 crore in just three years.”
“A network of 115 such shell companies has been found,” the assertion claimed.
During the raids, the tax groups “discovered secret hideouts where troves of documents containing details of unaccounted money and their process of laundering have been unearthed.”
The staff uncovered the entire modus operandi together with the position of ‘cash handlers’ and their particulars, the CBDT mentioned.
Their modus operandi is analogous with respect to the enterprise of pan masala and the accused group is alleged to have laundered again their unaccounted revenue by means of an in depth community of shell firms.

“Unaccounted loans and premia received from such paper companies exceeding Rs 110 crore in three years, have been detected.”
“The group ploughed back their unaccounted money through such shell companies by showing bogus advances against property sale, bogus loans and share premia,” it alleged.
It mentioned 24 “bogus” financial institution accounts of shell firms have been discovered through the motion.
“Deductions claimed under the Income-tax Act with respect to treatment of biodegradable waste are under detailed scrutiny.”
“It has been found that through some of these paper companies based in Kolkata, bogus sale and purchase of manure has been shown, amounting to Rs 80 crore so that cash can be deposited into bank accounts,” the assertion mentioned.