What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
NEW DELHI: In a recent development, the Income Tax Department has initiated search and seizure operations in connection with Polycab India, a prominent group engaged in the manufacturing of wires, cables, and other electrical products.
The operations, conducted on December 22, revealed significant financial discrepancies, raising concerns about unaccounted cash transactions.
According to the IT Department, credible evidence recovered during the search indicates that Polycab India’s flagship company conducted unrecorded cash sales amounting to approximately Rs 1,000 crore. These transactions were reportedly omitted from the company’s official books of accounts.
The IT Department extended the search to authorised distributors associated with the Polycab group. The search action covered more than 50 premises located in key areas including Mumbai, Pune, Aurangabad, Nasik, Daman, Halol, and Delhi.
“During the search operation, a substantial volume of incriminating evidence in the form of documents and digital data was found and seized. These pieces of evidence unveil the modus operandi of tax evasion employed by the group, allegedly in collusion with some of the authorised distributors,” stated the IT Department.
Preliminary analysis of the seized evidence suggests that the flagship company engaged in unaccounted cash sales, made cash payments for unrecorded purchases, and incurred non-genuine expenses related to transport and sub-contracting, all aimed at suppressing taxable income.
Evidences of unaccounted cash payments exceeding Rs. 400 crore, made by a distributor on behalf of the flagship company towards raw material purchases, were also seized. Additionally, non-genuine expenses, including sub-contracting expenses, purchases, and transport expenses, totalling about Rs. 100 crores, were identified in the seized evidence from the flagship company’s premises.
“The search action revealed unexplained transactions undertaken by the distributor, involving issuing bills without genuine supply of goods. These goods were allegedly sold in the open market for cash. The authorized distributor is suspected to have facilitated certain parties in inflating their purchase accounts, totalling approximately Rs. 500 crore. This distributor exclusively sells products of the flagship company,” reported the IT Department.
As a result of the search, unaccounted cash exceeding Rs 4 crore was seized, and more than 25 bank lockers were placed under restraint. The IT Department confirmed that further investigations into the matter are ongoing.
This revelation raises questions about financial practices within the Polycab India group, and the IT Department’s inquiry is expected to shed light on the extent of these irregularities.
