The Income-Tax Department alleged that the group took “accommodation entries” on the pretext of unsecured loans, had an unusually high sundry creditors and it suppressed its net profit. Unsecured loansA related group chit-fund company had received unsecured loans of several crores of rupees from unknown sources, as alleged. During searches, the department found evidence, purportedly establishing that the shell companies, from which loans were taken, existed only on paper and had no real business and creditworthiness. “Directors of these shell companies are dummy, non-filers and individuals of no means. Searches also revealed huge unaccounted investments in the construction of the residences of the key persons of the group.

Source: The Hindu November 20, 2020 09:33 UTC