The Income Tax Department carried out search and survey operations on 13.01.2021 on persons / entities engaged in the business of hotels, real estate, automobile, financing and wholesale trading of fruits etc. at Kolkata.

The cases were developed on the basis of available data in the departmental database, analysis of their financial statements, market intelligence and discreet field enquiries.

The search and seizure operation has resulted in unearthing of incriminating documents of undisclosed cash sales and claim of bogus expenses. During the course of search operation, incriminating documents have been found which revealed sale of shares of unlisted companies through layering to bring back unaccounted cash in the books of account in the form of unsecured loan / share capital. Round tripping of unaccounted wealth through professional help has also been detected. Evidences of booking bogus loss on sale of penny stocks, advancing of unaccounted cash loan and earning of unaccounted commission / brokerage / interest were also detected.

So far, concealment of income amounting to more than ₹ 450 crore has been detected. The assessee has made an admission of undisclosed income amounting to ₹ 105 crore. The search action has resulted in seizure of unaccounted cash of ₹ 1.58 crore.

Further investigations are in progress.

Search and seizure operations uncover undisclosed income and complex layering schemes; admissions, seizures and ongoing investigations follow. Search and seizure operations based on departmental data and enquiries uncovered concealment of income via undisclosed cash sales, bogus expenses, layering of unlisted share sales to convert cash into unsecured loans or share capital, round tripping, bogus losses on penny stocks, unaccounted loans and commissions; incriminating documents were seized, an assessee admitted a portion of undisclosed income, seizures of unaccounted cash were made, and further investigations continue.