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Income tax department raids coal trader

Yogesh Pradhan Mehta, a coal trader of the city, was subjected to a search and seizure operation by the taxman. The income tax department conducted raids on three firms owned by this businessman; PCR Roadlines, Anshul Impex and Anshul Mines and Minerals.

The taxmen suspect that the firm had recorded certain fake purchases so that the expenditure could be inflated, brining down the taxable income. However, nothing substantial could be reported on the first day of the searches, said a source.

PCR Roadlines, which is mainly into coal transport, is a sole proprietary concern while the other two are companies, dealing in import of coal and other related activities, sources said.

This is the second time the firm has faced action by the income tax department. Over a year ago, a survey was undertaken on Mehta's businesses and certain violations under the tax deducted at source (TDS) front were detected. Another survey had been conducted a decade ago, said sources.

Survey is a milder action as compared to search and seizure, and assets such as cash or jewellery cannot be seized during a survey. This is the second major income-tax raid conducted this year. Before this, the taxmen had swooped on Unijules Group, a city-based pharmaceutical company.

Source: The Times of India