Unaccounted Cash and Gold of more than Rs. 102 crores found during IT Raid
The Income Tax Department has started a search and seizure operation on some government contractors, real estate developers and their associates. Around 55 locations were searched in the states of Karnataka, Andhra Pradesh, Telangana and New Delhi.
“A large number of incriminating evidence, including loose sheets, hard copies of documents, and digital data, were discovered and seized. The modus-operandi of tax evasion discovered indicates that these contractors were involved in reducing their income through expense inflation by booking bogus purchases, non-genuine claims of expenses with subcontractors, and claiming ineligible expenses. The irregularities discovered in the use of contract receipts resulted in the generation of large amounts of unaccounted cash and the creation of undisclosed assets.” as per CBDT press release.
During the search, evidence showing expense inflation in the form of differences in Goods Receipt Note (GRN) validation was discovered. Evidence of massive discrepancies in documentation related to purchases booked and actual physical transport of goods has also been unearthed, in relation to bogus transactions with sub-contractors, some of whom were also searched for.
Furthermore, these contractors were involved in the recording of expenses for non-business purposes. Evidence of claims for liaison expenses was also discovered and seized.
Large-scale unaccounted cash transactions, which were not found recorded in the books of account, were also discovered during the search at the premises of assessees, sub-contractors, and associates, including certain cash handlers.
The search resulted in the seizure of approximately Rs.94 crore in unaccounted cash and over Rs.8 crore in gold and diamond jewellery, totaling more than Rs.102 crore. Furthermore, a cache of approximately 30 luxury wrist watches of foreign origin were discovered on the premises of a private salaried employee who was not involved in the wrist watch business.
More probe is going on.
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