Fictitious book entries by M/s. PCL and M/s. Altos.

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....os India Ltd., (ALTOS) by Directorate of Investigation, New Delhi. Results of investigation in respect of M/s. PCL/Altos revealed that M/s. PCL and M/s. Altos were giving book entries to various persons/companies. The modus operandi adopted by these concerns is given below: M/s. PCL entered into computer leasing agreement with a number of persons/companies/business concerns. Under these agre....

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....l get back the full amount. Under this arrangement, the advantage to it was to make a fictious claim of depreciation and investment allowance. This will reduce the taxable income of the person/business concern. The advantage to PCL group were two fold. Firstly, it got 50% sale price as finance for a period of 36/50 months. Secondly, the so called lease rent paid over 36 to 50 months was claimed....

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....     I I                                   (I) Pays Rs. 1 crore as initial deposit plus } Pays Rs. 2 crores for 3.55 lakhs P.M. for 36 months + 1.66 lakhs}--"X"---- Purchases per month for next 60 mon....