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I-T raids two manufacturers of steel rods, seizes Rs 4.7 crore

The team also seized incriminating documents and digital evidences showing unaccounted cash sales, the IT department said in a press release.

ET Bureau|
Updated: Aug 14, 2019, 07.48 PM IST
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BENGALURU: The Income Tax department officials have seized Rs 4.7 crore in unaccounted cash and jewellery in raids on two groups of companies in Bengaluru, Hindupur and Bellary engaged in the manufacture of TMT rods and other steel products, last week.

The team also seized incriminating documents and digital evidences showing unaccounted cash sales, the IT department said in a press release. The searches were conducted on A One Steel India and A One Steel and Alloys, IT officials said.

"It is seen from the evidences found at the search premises that one of the groups is engaged in making cash sales not accounted in the books of accounts by practicing a novel method of sales suppression, termed by them as 1 +1 scheme, wherein for a single GST invoice is raised, two loads of material are delivered to the customer – one load accounted and the other unaccounted. The sale proceeds of one load is received in cheque and the other in cash," the press release said.

The transporters, the release added, have been found to have been paid in cash towards the second load carried. Digital evidences in the form of various messages showing the use of hawala channels for transfer of cash from one place to another have been found in the mobiles of key employees. Various loose sheets, diaries and corroborating messages have been found to show such practice of the group, the release said..

The searches have also shown the misuse of GST input credit by these groups. The groups have taken accommodation bills from “bill traders” for value exceeding Rs 600 crore. Evidences found and extracted from digital data showed that these accommodation bills have been taken to disguise and account for the scrap purchases made in cash and unaccounted production of TMT rods, the release said.

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