Income Tax Department conducts searches on a prominent group in Jharkhand

Last updated: 29 July 2021

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The Income Tax Department has conducted a significant search operation on a major business group in Jharkhand involved in building construction and real estate. The investigation, which covered over 20 locations in Ranchi and Kolkata, uncovered evidence of substantial 'outside-the-books' transactions, with large amounts of cash received and not accounted for. The group allegedly used shell companies, some with 'dummy directors', to introduce illicit funds through bogus share capital and unsecured loans, amounting to approximately £25 crore. Furthermore, the group is suspected of fraudulently registering over 300 acres of forest land by registering it at a fraction of its actual value, with cash payments made to brokers and sellers.

Income Tax Department carried outa search operation on 28.07.2021 on a prominent group in Jharkhand dealing in building construction and real estate. The search began on 28.07.2021 in Ranchi and Kolkata. More than 20 premises were covered. Duringthe search, it was found that the group was not mai

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FAQ :

The Income Tax Department conducted searches on 28.07.2021 in Ranchi and Kolkata.

The group is involved in building construction and real estate.

The group was found not to be maintaining regular books of account, undertaking huge outside-the-books transactions, receiving a large portion of sale proceeds in unaccounted cash, and using shell companies for bogus share capital and unsecured loans.

Transactions of unsecured loan and bogus share capital to the tune of Rs. 25 crore have been detected.

The group registered a large tract of land at one-tenth of its value for stamp duty purposes and fraudulently got over 300 acres of forest land registered in its name.

Preliminary evidence suggests tax evasion of more than Rs. 50 crore, with figures expected to rise.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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Income Tax Department conducts searches on a prominent group in Jharkhand