Income Tax Department carried out search and seizure action on 05.02.2021 on various groups based in Kolkata, engaged in the business of Pharmaceutical manufacturing, diagnostic services and hospitals. The cases were developed based on the available data in the departmental database, analysis of their financial statements, market intelligence and field enquiries. Search and seizure action was carried out at more than 17 premises at Kolkata, Haridwar and Bhubaneswar.

The search action has resulted in unearthing of incriminating evidence revealing various shell entities being used for raising bogus share capital/unsecured loans, expenditure incurred in renovation of property in cash etc. Evidence of out of books cash transactions has also been found. As a result of enquiries conducted during the course of search proceedings, it has been established that the groups have used paper/shell companies to route back their own unaccounted money. A Finance broker engaged in facilitating cash loans to the group was also covered during the operation, who confirmed the transactions.

A total concealment of income amounting to ₹ 300 crore has been detected so far. Cash amounting to ₹ 87 lakh and Jewellery worth ₹ 61 lakh has been seized. 8 Bank lockers have been put under restraint. The assessees have made an admission of undisclosed income amounting to ₹ 50 crore.

Further investigations are in progress.

Tax search and seizure uncovers organised use of shell companies to hide income, leading to seizures and ongoing probes. Tax search and seizure operations at multiple premises uncovered documentary and material evidence of off book cash transactions and use of paper or shell entities to route back unaccounted funds; a finance broker corroborated cash loan facilitation and some assessees made admissions of undisclosed income, with cash, jewellery and bank lockers seized and further investigations ongoing.