Income-Tax Department searches lead to over ₹500 crore unaccounted income

 












Searches by the Income-Tax Department, on four groups in different parts of the country, has led to the detection of unaccounted income exceeding ₹500 crore.


In the first case, the searches were conducted on more than 25 premises linked to two groups of Nandurbar and Dhule in Maharashtra on December 22. They are in the civil construction and land development business.

The agency found that one group resorted to large-scale suppression of taxable income by inflating expenses, primarily by claiming non-genuine sub-contract expenses and unverifiable old sundry creditors. The sub-contracts in question were shown to have been awarded to family members and their employees who, in fact, did not render any services.

According to the agency, the group has evaded income to the extent of ₹150 crore on account of the malpractices.


A substantial part of the second group’s transactions were in unaccounted cash. “Incriminating documents evidencing receipt of ‘on-money’ on land transactions and cash loans exceeding ₹52 crore have been found and seized,” said the agency.

Another round of searches was on two groups, one of which manufactures electrical goods and is also in the real estate and hotel business in Rajasthan, Maharashtra and Uttarakhand. The second group is in the money-lending business in Jaipur and nearby cities. “The search action has covered more than 50 premises spread over various locations including Jaipur, Mumbai, and Hardwar (Uttarakhand),” it said.

The first group, which claimed bogus expenses to reduce taxable income, had undisclosed income of over ₹150 crore. “The key person of the group has admitted ₹55 crore as undisclosed income and has offered to pay tax thereon,” said the department, adding that the other group had also generated undisclosed income of more than ₹150 crore.

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