Income Tax dept detects Rs 86 crore undisclosed income after raids on SP leaders, others in UP, K’taka

 












The Income Tax Department said it has detected undisclosed income of Rs 86 crore after and others in Uttar Pradesh and Karnataka.



The Income Tax Department had initiated a search and seizure operation against various individuals and their business entities on December 18. The individuals concerned are engaged in the businesses of civil construction, real estate and running educational institutes in UP and Karnataka.


The functionary Rajeev Rai in Mau, Manoj Yadav in Mainpuri and Jainendra Yadav in Lucknow of Uttar Pradesh, sources said.

“A Kolkata-based entry operator has also been covered in the search operation. The search action covered more than 30 premises spread over various locations including Lucknow, Mainpuri, Mau, Kolkata, Bengaluru and NCR,” read a statement released by the finance ministry.
UNDISCLOSED INCOME, UNEXPLAINED INVESTMENT

The tax officials alleged that a large amount of incriminating evidence, including hard copy documents and digital data were found and seized during the searches. This includes blank bill books, stamps and signed cheque books of bogus suppliers.

On preliminary analysis, it was found that several entities engaged in the business of civil construction were involved in claiming bogus expenditure running into crores of rupees to evade taxes, officials said.



In case of one company, undisclosed income of over Rs 86 crore of the directors of the company has been detected. Out of the amount, the person concerned has admitted a sum of Rs 68 crore as his undisclosed income and offered to pay tax thereon. In the case of a proprietary concern, books of accounts relating to its turnover exceeding Rs 150 crore during the last few years could not be produced,” the statement further said.


The tax officials said they have detected the use of shell companies to route unexplained income and investments. An alleged unexplained investment to the tune of Rs 12 crore was identified by the search team.

“In case of another person, unexplained investment of Rs 11 crore in a shell company and investments in benami properties worth Rs 3.5 crore have been identified,” the statement said.

According to investigators, a Kolkata-based accommodation entry provider was also covered in connection with providing accommodation entries to the individuals concerned. The officials found that the entry operator formed various shell companies to provide accommodation entries of bogus share capital to the tune of Rs 408 crore and bogus unsecured loan of Rs 154 crore through these shell companies.


“Substantial amount of digital data evidencing hawala transactions has also been found and seized during the search operation. The entry operator has admitted to the above modus operandi, and also disclosed unaccounted commission income of Rs 5 crore,” the statement added.



Rajiv Rai reportedly told the media that the raids on his residence in Mau were conducted at the behest of the government. Former Chief Minister and Samajwadi Party leader Akhilesh Yadav also slammed the Centre and accused it of misusing central agencies.



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