The Income Tax department has found “unaccounted cash sales” of ₹1,000 crore (approximately) after it raided Polycab group, a prominent wires, cables, and electrical items manufacturer, according to an official statement by the Ministry of Finance.
The I-T sleuths initiated search and seizure operations last year in December. The search action was conducted at more than 50 premises located in Mumbai, Pune, Aurangabad, Nasik, Daman, Halol and Delhi.
In an official statement by the ministry, the search operation proved that Polycab India made unaccounted cash sales of around ₹1,000 crore.
The CBDT said a large number of “incriminating” evidence in the form of documents and digital data were seized during the raids. These reveal the “modus operandi of tax evasion” adopted by the group in connivance with some of authorised distributors, it said.
Polycab India share price cracks over 22% on reports of I-T raid
Besides, the income tax department also seized unaccounted cash payments of more than ₹400 crore made by a distributor, on behalf of the flagship company.
The tax sleuths also identified non-genuine expenses in the nature of sub-contracting expenses, purchases and transport expenses, etc. aggregating to about ₹100 crore.
The investigative operation also found unexplained transactions undertaken by the distributor for issuing bills without a genuine supply of goods whereas such goods have been sold in open markets in cash.
During search operation, unaccounted cash exceeding ₹4 crore, has been seized and more than 25 bank lockers have been put on restraint, according to the Ministry of Finance.
On Tuesday, Pokycab India rejected the rumours of tax evasion.
“Plycab India remains focused on its mission to provide quality products and services to its customers while upholding the principles of corporate governance and ethical business practices,” Polycab told stock exchanges on 9 January.
Shares of Polycab India were down 16.26% at ₹4,103 on Thursday.
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Published: 11 Jan 2024, 10:56 AM IST