The Income Tax department on Wednesday carried out raids at offices of leather firms in Kanpur and Unnao. The I-T department raided 15 places in both the cities.
The Kanpur unit of I-T department raided offices of Model group of companies including Model Tanners India Private Ltd, Model Exim Private Ltd, Model Exims. Another leather firm, Sultan Group of companies including Sultan Tanners Private Ltd, Sultan Overseas.
All the firms on which the I-T raids are still carrying out deal in manufacturing and trading of Leather and Leather products.
The raids came after these firms have been accused of inflated purchases of raw hides and other primary products, unaccounted sales, improper balance sheets. The firms were also accused of showing bogus long term capital gain (LTCG) from Kolkata based shell Companies. The authorities would also unvestigate unsecured loans from shell firms, unaccounted Investment and pending suspicius transaction report.