Daijiworld Media Network - Bengaluru (SP) 

Bengaluru, Aug 15: Two companies involved with the manufacture of TMT rods and other steel items located at Hindupur and Ballari respectively came under the scanner of income tax department. The officials of the department, who raided and searched the premises of these two companies reportedly recovered unaccounted cash and jewellery worth Rs 4.7 crore. 

The department sources said that the searches were conducted on August 7. During this operation, cash and jewellery worth Rs 4.7 was recovered. The officials reportedly got access to incriminating documents and digital transactions which showed that these companies were involved with sales which were not reflected in the books of accounts of the companies. 

One of the companies, it is said, avoided taxes by following 1+1 scheme of unaccounted sales. Under this, the company raised a single GST invoice but double the quantity of materials was sold to the customers. Thereby, they showed only 50 percent of the sales on record, and the balance half went unrecorded. The unaccounted loads were sold against cash while the one on record was sold against cheques. The transportation and other expenses relating to the unaccounted sales were made in cash. 

The officials who verified cell phone records of the employees in important positions of the company accessed messages which hinted that hawala transactions were put through for delivery of cash from one point to the other. The officials also recovered a number of sheets, diaries and messages connected with illegal transactions. The officials found that GST input credit was misused by both the companies with impunity. 

The companies were found to have got accommodation bills from bill traders for amount exceeding Rs 600 crore. There is evidence to prove that these bills were used to make scrap purchases in cash and for TMT rods production of which was unaccounted. 

It is said that both the companies used dummy bills. The IT officials have obtained statements from employees of the two companies. Further investigation is on.