Income Tax Department Uncovers Unreported Cash Sales Amounting to RS 1,000 Crore at Polycab

The Income Tax department uncovered approximately Rs1,000 crore in unaccounted cash sales during a raid on the Polycab group, a leading manufacturer of wires, cables, and electrical items, as stated in an official Ministry of Finance announcement. The search and seizure operations were initiated by the I-T authorities in December last year, covering more than 50 locations in Mumbai, Pune, Aurangabad, Nasik, Daman, Halol, and Delhi.

In an official ministry statement, it was confirmed through the search operation that Polycab India engaged in unaccounted cash sales totaling around Rs1,000 crore. The CBDT reported the discovery of a significant amount of incriminating evidence, including documents and digital data, during the raids. These findings expose the group's method of tax evasion, indicating collaboration with certain authorized distributors.

In addition, the income tax department discovered unrecorded cash payments exceeding Rs 400 crore facilitated by a distributor on behalf of the main company. The tax investigators also identified non-genuine expenses, including sub-contracting expenses, purchases, and transport expenses, amounting to approximately Rs 100 crore.

The investigative operation uncovered unexplained transactions by the distributor involving the issuance of bills without genuine goods supply, with those goods being sold in open markets for cash.

During the search operation, unaccounted cash exceeding Rs 4 crore was seized, and more than 25 bank lockers were restrained, as reported by the Ministry of Finance. 

Also Read: Interim Budget 2024 Report Indicates No Alterations to Income Tax Rebate