Income Tax Department conducts search operations in Gujarat on 40 premises

Income Tax Department conducts search operations in Gujarat on 40 premises On 03.12.2021, the Income Tax Department launched a search and seizure operation against a significant Surat group involved in the development of residential and commercial complexes, land transactions, and real estate financing. More than 40 premises in Surat and Mumbai were searched as part of the operation. Various incriminating documentary and digital evidences were discovered and seized during the search operation, including a parallel set of books of account in the case of group organisations. The transactions of specific group entities were discovered to be highly coded, but the search team was able to successfully decode them. According to a preliminary review of these evidences, there is an unexplained cash receipt of more than Rs. 300 crore on the sale of flats/land that is not documented in the regular books of account. Unaccounted financial infusions by partners, fake accommodation entry loans paid in cash, and unexplained cash expenses, among other things, have been discovered. Further investigation of actual books of account and incriminating material recovered during the search activity reveals unexplained real estate investments of over Rs. 200 crore and loan financing of over Rs. 100 crore. The search operation resulted in the confiscation of Rs. 4 crore in unaccounted cash and Rs. 3 crore in jewellery, as well as the closure of more than a dozen bank lockers. The search operation resulted in the discovery of estimated hidden receipts and suspicious entries totaling over Rs. 650 crore. Further investigations are being carried out.