The Hindu Business Line : I-T searches yield rich haul in Pune

Total seizure of unaccounted assets increased by 110 per cent over last year and surrender of concealed income increased by 85 per cent with only 38 per cent increase in the number of searches.

Our Bureau

Pune , April 14

Search and seizure actions in 40 groups covering 287 premises were conducted by the Directorate-General of Income Tax (Investigations) Pune during fiscal 2005-06.

According to Mr Shishir Agarwal, Additional Director of Income Tax (Investigations) Pune, the operations covered groups engaged in activities such as education, money lending, construction and building materials, manufacturing of steel, terry-towels, rice milling, cable operators, trading in agricultural goods, jewellery, etc. During the year, total seizure of unaccounted assets increased by 110 per cent over last year and surrender of concealed income increased by 85 per cent with only 38 per cent increase in the number of searches, he said. Operations in the case of educational institutions/agents in July 2005 had resulted in seizure of assets of Rs 12.22 crore, including cash of Rs 6.66 crore. During the search operations on two groups of Pune engaged in jewellery business, they offered tax on unaccounted income of Rs 15 crore. And in a follow-up survey, further unaccounted income of Rs 1.30 crore was found. Unaccounted cash of Rs 2.24 crore was seized along with FDRs and gold bars from a Bhiwandi-based group engaged in construction of godowns and industrial complexes, which admitted concealed income of Rs 20 crore. Unaccounted cash of Rs 2.75 crore was also seized from a Nasik-based business house engaged in manufacturing steel ingots from scrap. The group admitted concealed income of Rs 4.71 crore. AJalna-based group engaged in the business of manufacturing sponge iron, MS ingots bars, disclosed unaccounted income of Rs 25.50 crore on account of bogus long term capital gains shown to have been earned in penny stockdealings. Two groups at Pune also surrendered Rs 2.40 crore and Rs 1.70 crore in similar bogus penny stock deals

Enquiries had been initiated in respect of other persons engaging in similar activity, he said. Searches conducted on assessees based in relatively smaller towns also yielded results.

Search on an Aurangabad-based group engaged in construction activities led to seizure of assets worth Rs 1.60 crore and admission of concealed income of Rs 6.36 crore. An assessee engaged in manufacturing, trading and export of terry-towels and napkins at Solapur admitted concealed income of Rs 2.51 crore.

A group of rice millers searched at Kolhapur surrendered unaccounted income of Rs 3.01 crore.

`Operation lifestyle'

`Operation lifestyle' surveys were conducted in 27 entities engaged in lifestyle-related items, such as furniture, interior decorators, electronic goods, art galleries, event managers, with a view to identify high spenders and match their spending with the tax-paid incomes. Irregularities hadalso been detected in the accounts of the entities surveyed. In the case of an architect and interior decorator of Nagpur who executed projects worth Rs 80 crore, it was noticed that no books of accounts were maintained and only a small income was shown. Unaccounted income of Rs 70 lakh and Rs 50 lakh were admitted by two banquet hallowners at Thane. Mr Agarwal said survey action u/s. 133A of the Income-tax Act, 1961, were also conducted on some prominent builders at Pune and Thane. A firm engaged in land development at Vasai and Palghar was found to have concealed taxable income of Rs 5 crore, he said.

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