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Countrywide I-T raids on steel group yield over Rs 1.7 cr

Our Bureau

Kolkata , July 23

A MAJOR search seizure operation conducted by the income-tax (I-T) department at 14 places in Kolkata, Delhi, Chennai and Durgapur on July 21-22, on a business group engaged in manufacture and trading of steel products, has resulted in seizure of assets totalling Rs 88 lakh, cash of Rs 32.60 lakh and jewellery worth Rs 54.65 lakh.

According to information from the office of the Director-General of Income-Tax (Investigation), East, Kolkata, the group was found to have been systematically suppressing production and sales on a large scale.

Papers seized during the course of the search have revealed suppression of production and sales for a period of 20 days, of an approximate value of over Rs 7 crore.

I-T department sources said that this was being done not only by keeping purchase of raw materials and sales outside the books of accounts but by showing excess wastage in production.

Documents recovered show a turnover of over Rs 50 crore in one of the flagship companies of the group for a single quarter against a disclosed turnover of around Rs 70 crore for the whole year.

The group was also found to have inflated transportation expenses, the difference of over Rs 74 lakh having been received in cash.

One of the key Directors, according to the department, was also found to have incurred expenditure of over Rs 50 lakh in cash on account of marriage and other personal expenses.

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Countrywide I-T raids on steel group yield over Rs 1.7 cr

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