Income Tax Dept detects ₹350 cr unaccounted cash receipts after raid in Rajkot

 








The Income Tax Department carried out a search and seizure operation on a real estate group based in Gujarat's Rajkot and found unaccounted cash receipts in various projects of approximately ₹350 crore, the Finance Ministry said on Friday.


The group is among Gujarat’s prominent real estate builders and developers and is actively engaged in real estate, construction and land trading businesses in and around Rajkot. More than 40 premises were covered in the search operation.

During the course of operation, many incriminating documents and digital evidences were seized indicating involvement of the group in unaccounted transactions.

The IT sleuths found substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash. Evidence of on-money payments in real estate projects-flats, shops and land deals has also been found.

Total unaccounted cash receipts in various projects of approximately ₹350 crore have been unearthed alongwith corroborative evidences. Further, evidence related to land purchase of approximately Rs. 154 crore has also been found, out of which, Rs. 144 crore was purportedly paid in cash," the statement said.

The search operation has resulted in detection of concealment of income in excess of ₹300 crore spread over various assessment years, which is likely to go up. “Unaccounted cash of more than ₹6.40 crore and jewellery amounting to Rs. 1.70 crore has been seized from different premises."

“Furthermore, promissory notes to the tune of Rs. 4 crore have also been found and seized. 25 lockers have been found during the course of the search operation which have been put under prohibitory orders. The search operation is still continuing," the ministry said.

In a separate development, the department also carried out search and seizure operation on a group based in Visakhapatnam at 17 different premises across Andhra Pradesh, Chhattisgarh, Nagpur and Kolkata. The group entities are engaged in extraction of vegetable oils, mining of manganese ore, and manufacturing of ferro alloys.

During the course of the search operation, the income tax department seized hand written diaries/documents, loose sheets depicting undisclosed cash transactions.

“The group is inflating expenditure, indulging in cash sales of oil and under invoicing of slag. Transactions in the form of suppression of sales and inflation of expenditure were unearthed," the finance ministry said in a different statement.

It further informed that unaccounted cash of ₹3 crore had been seized so far. “In total, the searches have resulted in detecting incriminating evidence relating to undisclosed financial transactions of about Rs. 40 crore," he said.



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