PANJIM: The Union Ministry of Finance (MoF) on Saturday revealed that the Income Tax Department had carried out a search and seizure operation on August 25, on a group based in Maharashtra and Goa.
This operation is still ongoing, the Ministry added.
“The group is a prominent steel manufacturer and trader of Pune, Nashik, Ahmednagar and Goa. More than 44 premises were covered in the search operation,” said MoF in its statement to the media.
The ministry explained that during the course of the search and seizure operation many incriminating documents, loose papers and various types of digital evidence were seized.
“Evidence detected during the search revealed that the group was engaged in fraudulent practice of booking bogus purchases of scrap and sponge iron from various ‘fake invoice issuers’. Premises of fake invoice issuers were also covered during the search,” said MoF.
“Such invoice issuers have admitted that they supplied only bills but no materials and also generated fake e-way bills to show it as genuine purchases and to claim GST input credit,” MoF added.
MoF further stated that with the active support of GST Authorities, Pune, the ‘Vehicle movement tracking app’ was used to identify fake e-way bills.
“Total bogus purchases identified from these parties so far are around Rs 160 crore. The verification is still in progress and the quantum of bogus purchases is likely to increase substantially,” said MoF.
“Moreover, shortage of goods to the tune of Rs 3.5 crore and excess stocks of Rs 4 crore was also found from the premises and the same has been admitted by the assesses,” MoF added.
“Unaccounted investment in property was also unearthed. Unaccounted cash of Rs 3 crore and jewellery amounting to Rs 5.20 crore has been seized from different premises. Unaccounted silver articles of 194 Kg valued at about Rs 1.34 crore have been found during the search and have been accepted and declared as additional income by the assessee,” said MoF.
“So far, a total of Rs 175.5 crore of unaccounted income has been unearthed including unaccounted cash and jewellery, shortage and excess of stock and bogus purchases,” MoF added.
The ministry confirmed that the search operation is still continuing and that further investigations are currently in progress.
