The Income Tax Department carried out search and seizure operations in the cases of two groups based in Punjab.

The search action in case of the first group was initiated on 21.10.2021. This group is engaged in Cycle business. The group has been found to be involved in suppression of income by showing bogus intra-group transactions within group concerns. The group was also found to have been involved in receiving a substantial part of sale consideration in cash and thereby suppressing the turnover. The seized documents reveal suppression of turnover of around ₹ 90 crore per annum by a group concern. Incriminating documents related to the undisclosed sale of scrap have also been seized.

The search also revealed undisclosed investments by the group members in immovable properties.

The search action has led to detection of unaccounted income of about ₹ 150 crore. The search action has resulted in seizure of unaccounted cash of ₹ 2.25 crore and seizure of unaccounted gold of ₹ 2 crore in this group.

The second group, based in Jalandhar, is engaged in providing immigration & study visa related services to students. The search action in this group was initiated on 18.10.2021.

The search action has revealed that the group used to charge a package, ranging between ₹ 10 lakh to ₹ 15 lakh per student, depending on the country where the student wished to pursue education. Almost the entire receipts of the group, aggregating to more than ₹ 200 crore in the last 5 years are in cash. It has also been found that the bank accounts of the employees have been used to receive money, which has subsequently been withdrawn in cash. The profit earned from such receipts has never been disclosed in the Income Tax Returns filed. Only the commission received from foreign universities has been shown as receipts in the Income Tax Returns by the members of the group.

The search action has led to detection of unaccounted income of about ₹ 40 crore. The search action has also resulted in seizure of unaccounted cash of ₹ 20 lakh and seizure of unaccounted jewellery of ₹ 33 lakh.

Further investigations are in progress in both the groups.

Search and seizure expose suppression of income and undisclosed cash and assets in regional business groups. Search and seizure operations in two business groups revealed suppression of income via bogus intra group transactions, extensive cash sales and undeclared scrap and property investments in a manufacturing group, and in an education/immigration services group receipt of high value package payments largely in cash, use of employee bank accounts to receive and withdraw funds, and declaration only of commission income. Searches detected substantial unaccounted income and resulted in seizure of cash, gold and jewellery; investigations continue.