The Income Tax Department carried out search and seizure action on three real estate and stock broking groups of Kolkata on 05.01.2021. The search operation was conducted based on the available data in the departmental database, analysis of their financial statements, on market intelligence and field enquiries.

The search action has resulted in unearthing of incriminating evidences revealing various shell entities being used for raising bogus share capital/unsecured loans. Evidences of out of the books cash transactions have also been found. Further, significant amount of un-booked revenue on account of sale of flats was detected. During the course of search proceedings, as a result of enquiries conducted, it has been established that the persons of the group have used paper/shell companies to route back their own unaccounted money. A total concealment of income amounting to ₹ 365 crore has been detected so far. The assessees have made an admission of undisclosed income amounting to ₹ 111 crore.

The search action has resulted in seizure of unaccounted cash of ₹ 3.02 crore and jewellery worth ₹ 72 lakh.

Further investigations are in progress.

Tax search uncovers shell-company schemes and undisclosed real estate income, triggering seizure and further investigations. Searches of three Kolkata real estate and stock-broking groups uncovered use of paper/shell companies to raise bogus share capital and unsecured loans, out-of-books cash transactions, and significant unbooked revenue from flat sales. Enquiries indicate routing back of unaccounted group funds through shell entities. Investigations detected concealment of income amounting to Rs. 365 crore, with assessees admitting undisclosed income of Rs. 111 crore, and seizures of unaccounted cash and jewellery; further investigations continue.