The Income Tax Department has carried out searches on 05/11/2020 in the case of one prominent coal trader of West Bengal having premises in Raniganj, Asansol, Purulia and Kolkata. The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes.

The searches have led to seizure of documents indicating that companies of the assessee group held bogus investments in unquoted equity shares of paper concerns to the magnitude of around ₹ 150 crore, out of which investments of around ₹ 145 crore have been sold. These sale transactions were found to be sham transactions and have been admitted by the assessee in the statement recorded during the search.

The searches have also led to seizure of a substantial number of incriminating documents showing cash generation in coal and sand trading, sponge iron sales etc. Documents have also been seized indicating huge unaccounted expenses for facilitation of coal transport and various trading activities.

The searches have led to seizure of unaccounted cash and bullion of around Rs.  7.3 crore. Further investigations are going on.

Search and seizure operations uncover sham share investments and unaccounted cash, prompting ongoing fiscal investigation. Search and seizure operations uncovered documents showing bogus investments in unquoted equity and sale transactions treated as sham transactions, admissions by the assessee in a recorded statement, numerous incriminating documents evidencing cash generation from coal, sand and sponge iron trading and unaccounted facilitation expenses, and seizure of unaccounted cash and bullion; further investigations are ongoing.