IT Dept raids Real State and Civil Contract Business; Seized Unaccounted Cash and Jewellery worth Rs.15 Cr

IT Dept raids Real State and Civil Contract Business; Seized Unaccounted Cash and Jewellery worth Rs.15 Cr The Income Tax Department carried out a search operation on a Jhansi based group, engaged in the business of civil contract and real estate development. The search operation covered around 30 premises located in Jhansi, Delhi, Lucknow, Kanpur, and Goa on 03.08.2022. Several damning items, including documentation of numerous immovable assets owned by different third parties, were discovered and seized during the search operation. According to a preliminary review of the evidence in the civil contracting industry, the group engaged in extensive tax evasion by concealing its profits by fiddling with the regular books of account at the end of each year. These deceptions took the form of making up fictitious expenses and creditors, among other things. The existence and veracity of these many creditors were discovered to be false. The acquired material has been used to quantify the claim of fictitious expenses and fictitious creditors totaling more than Rs. 250 crores. Receiving money over the amount required to pay stamp duty, which results in tax evasion, was another method of operation used by real estate corporations. Even after significant building work had been done, these businesses were not reporting income to tax in accordance with accounting requirements. The examination into the evidence gathered during the search has thus far identified an amount of unexplained receipts of more than Rs. 150 crores. The search operation has resulted in the seizure of unaccounted cash and jewellery exceeding Rs. 15 crores, for the present. Further investigations are in progress.