Income Tax department conducts searches in Kolkata

New Delhi, March 10 (IANS) The Income Tax department has carried out a search and seizure operation on various persons based in Kolkata, engaged in the business of electrical equipment and trading of decorative lighting.The cases were developed through market intelligence and field enquiries.The search and seizure action was carried out on Tuesday at more than three premises in Kolkata, the department said in a statement.The department's action has resulted in unearthing of incriminating evidences (both physical and electronic) where prima facie it has been observed that various bank accounts were being used by these persons for squaring off trade accounts with Chinese exporters. These products were allegedly not imported at arm's length price so as to have less impact of Customs duty on imported products, thereby reducing the purchase price.Several unaccounted transactions have also been found by the department pertaining to the sale of electrical equipment in the domestic market.Preliminary enquiry has also indicated that the persons on whom search and seizure operations were conducted are engaged in clandestine operation, wherein they receive cash, convert them into foreign exchange through individuals engaged in such conversion work, and through some bank accounts the amount is transferred to foreign accounts of Chinese exporters who export different kinds of goods to Indian importers.Hence, a part of the purchase cost is transferred to the accounts of Chinese exporters through this mode. Various mobile and electronic devices having such communication/evidences have been seized.Unaccounted cash in excess of Rs 3 crore has been found, which has been seized, the I-T department said.
--IANS sn/arm