The Income Tax Department has detected Rs 1000 crore of unaccounted cash sales and Rs 400 crore unaccounted cash payments by leading electrical cables and wire maker Polycab India Pvt Ltd in scrutiny of documents seized during raids last month.
The Free Press Journal had extensively reported the coordinated multiple raids and searches at over 50 locations of PolyCab India last month including 23 manufacturing facilities, 25 warehouses and more than 15 offices including senior management offices and residences for alleged tax evasion.
Raids held at several places across the country
The taxmen had raided and conducted searches at Mumbai, Pune, Aurangabad, Nasik, Daman, Halol and Delhi of of Polycab India and its distributors based on specific inputs of large scale unaccounted cash transactions by the fast moving electric wire and cable
The IT sleuths had seized incriminating evidences in the form of documents and digital data that revealed modus-operandi of tax evasion adopted by the group in connivance with some of the authorised distributors. “Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales,cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc for suppression of its taxable income,” said the Income Tax department in a statement.
Cash sales of ₹1000 Cr not recorded in books: IT Dep
According to senior IT officials the flagship company PolyCab India made unaccounted cash sales of around Rs. 1000 crore which are not recorded in the books of accounts. "Evidences of unaccounted cash payments of more than Rs. 400 crore made by a distributor, on behalf of the flagship company towards purchases of raw materials, bogus and inflated invoices in sub-contracting of purchases and transport expenses aggregating to about Rs. 100 crore were also identified," said the IT statement.
The search action also resulted in determination of unexplained transactions undertaken by the distributor for issuing bills without genuine supply of goods for sale in open market in cash. The authorized distributor facilitated inflated purchase accounts aggregating Rs. 500 crore. The tax officials also seized unaccounted cash exceeding Rs. 4 crore and put restrictions on operating of more than 25 bank lockers.
