The CBDT on Tuesday
claimed that the Income Tax Department has detected black money worth
crores stashed abroad after it raided a leading business group involved in
manufacture of textile and filament yarn.
The searches that
were launched on September 18, 2021 are continuing at the premises of the group
including its corporate offices in Delhi, Punjab and Kolkata. The Central Board
of Direct Taxes (CBDT) claimed in a statement, that, the group has maintained
unaccounted funds of about Rs 3.50 billion in its foreign bank accounts and has
also routed these funds back into its business through shell entities in tax
havens.
The modus operandi
detected was related to investment by foreign entities, under control of the
group, in foreign currency convertible bonds, issued by its main concern, and
subsequently under the garb of defaulting on payments, converting it into shares
of the company.
The CBDT said that foreign
companies and trusts were being paid management fees for managing the
unaccounted funds. Though there is a specific requirement of disclosing foreign
assets owned/managed in the form of companies and bank accounts in schedule FA
in Income Tax Returns, the same has not been
disclosed by the group to the department.
The statement said the department has gathered
“evidence” that cash of about Rs 100 crore was generated by debiting
“bogus expenditure” in company accounts and cash transactions in land
deals.
Source: Business Standard
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