Income Tax department unearths bogus investments worth Rs 150 cr of West Bengal coal trading company
Nov 06, 2020
New Delhi [India], November 6 : The Income Tax department conducted searches on the premises of one prominent coal trading company in West Bengal and unearthed alleged bogus investments of around Rs 150 crore, officials said on Friday.
According to an official statement, the Income Tax department on Thursday carried out searches at the premises of a prominent coal trader in West Bengal's Raniganj, Asansol, Purulia and Kolkata.
"The searches have led to the seizure of documents indicating that companies of the assessee group held bogus investments in unquoted equity shares of paper concerns to the magnitude of around Rs 150 crore, out of which investments of around Rs 145 crore have been sold," the Central Board of Direct Taxes said in a statement.
It said that the searches were based on intelligence gathered, which indicated that large-scale unaccounted cash was being generated and used for various purposes.
"These sale transactions were found to be sham transactions and have been admitted by the assessee in the statement recorded during the search. The searches have also led to the seizure of a substantial number of incriminating documents showing cash generation in coal and sand trading and sponge iron sales," the statement said.
"Documents have also been seized indicating huge unaccounted expenses for the facilitation of coal transport and various trading activities. The searches have led to the seizure of unaccounted cash and bullion of around Rs 7.3 crore," it added.
