I-T dept detects unaccounted income of ₹70 crore after raids on business group

Though the I-T department did not name the group of companies in Karnataka, it said that they were engaged in civil construction of roads and irrigation projects.

The Income Tax department has detected unaccounted income of over ₹70 crore after it recently conducted a raid on one of the leading business groups of Karnataka. Though department in a statement on Wednesday didn’t name the group of companies but said that they were engaged in the civil construction of roads and irrigation projects.

The raids were conducted on October 28 in various locations in north Karnataka, read the statement from the I-T department.

The raids were conducted on October 28 in various locations in north Karnataka, read the statement from the I-T department. “The search operation has revealed that this group has been suppressing its profits by booking bogus expenses in the purchase of materials, labor expenses and payment to subcontractors,” the statement stated.

Adding that various incriminating documents including digital evidence indicating non-genuine claim of such expenses have been found and seized the raid, the I-T department said: “Analysis of the same (digital evidence) shows that unaccounted cash has been received by the key group person from such vendors/ suppliers of materials,” the statement added.

The I-T department also claimed that these owners of these companies used their own relatives/friends/employees conduits in the name of subcontractors who neither executed any work nor did they have the capability to execute the work. “The assessee group has been generating unaccounted cash from these transactions. The search action has led to the detection of unaccounted income of more than Rs. 70 crore which has been admitted as undisclosed income by the assessee group,” the I-T department claimed.