E-Paper
IT searches across Karnataka, AP, Telangana, Delhi; cash worth ₹94 cr recovered
The searches were conducted on the premises of government contractors, real estate developers and their associates
The Income Tax (IT) department on Monday said that it had conducted searches in at least 55 premises across Karnataka, Andhra Pradesh, Telangana, and New Delhi on October 12.
The searches were conducted on the premises of government contractors, real estate developers and their associates.
The search resulted in the seizure of unaccounted cash worth ₹94 crore along with gold and diamond jewellery of over ₹8 crore.
Also Read: I-T recovers ₹42 cr from contractor’s residence in Bengaluru
“The modus-operandi of tax evasion detected indicates that these contractors were involved in reducing their income by inflation of expenses by booking bogus purchases, non-genuine claim of expenses with sub-contractors and claiming ineligible expenses. The irregularities detected in utilization of contract receipts, has resulted in generation of huge unaccounted cash and creation of undisclosed assets,” an IT spokesperson said in a statement adding that incriminating evidence in the form of loose sheets, hard copy of documents and digital data have been found and seized.
The department said that evidence indicating inflation of expenses in the form of discrepancies in Goods Receipt Note (GRN) validation have been unearthed during the search.
“Evidences of huge discrepancies in documentation related to purchases booked and actual physical transport of goods have also been unearthed, with regard to bogus transactions with sub-contractors, some of whom were also covered during the search. Further, these contractors were also involved in booking expenses for non-business purposes. Evidences of claim of liaison expenses have also been found and seized. Large scale unaccounted cash transactions, which are not found recorded in the books of account, have also been found during the search, from the premises of assessees, sub-contractors, and associates including certain cash handlers,” the statement said.
The department said that 30 luxury wrist watches of foreign make were found from the premises of a private salaried employee, not engaged in the business of wrist watches.
