“These operations have, prima facie, led to the detection of huge amounts of undisclosed income, seizure of unaccounted assets and incriminating evidence and involvement in benami transactions by these three groups,” the Central Board of Direct Taxes said in a statement.
The search action revealed that the key person of one of the groups, although engaged in Cross-LOC (Line Of Control) trade until the suspension of trade by the government in April 2019, has not filed his income tax returns. He was also found to be having two active PANs, the Board said.
The businessman’s proprietary concern has made exports of over Rs 25 crore in the last few years. “However, no income tax has been paid. Incriminating documents related to the LoC trade have been seized from the Custodian of cross-LOC trade, indicating large-scale tax evasion,” the Board added.
There are also evidences of unexplained expenditure on the education of the businessman’s daughter in Pakistan.
In another case, the key person and his brother were engaged in Cross-LOC trade until the suspension by the government. Exports of Rs 3 crore in the last two years have been found but income tax return of only one year has been found, showing meagre receipts, and not matching with credits running into crores in multiple bank accounts.
“Further, evidences showing illegal trade in violation of suspension of cross LoC trade have been seized. The passport of the assessee reveals that he had travelled to Pakistan for 20-25 days every calendar year since 2017 and the source of expenditure on this account is prima-facie unexplained,” the Board added.
In yet another case unaccounted cash of Rs 15 lakh was seized from a group engaged in Cross- LOC trade of vegetables and fruits. While the group has multiple companies, their transactions do not reflect in income tax returns.
Further, documents pertaining to the unaccounted business transactions of about Rs 10 crore have been seized. In another case of a firm, one of the partners in the firm has admitted that his name was only being used, though he was not involved in any activity of the firm.
“The matter is being examined from the angle of Benami transactions. A locker has also been found which is yet to be searched and has been placed under restraint. Further investigations are going on,” the Board said.
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