Team News Riveting
New Delhi, December 2
The Income Tax department has seized Rs 8.5 crore cash and detected unaccounted income of over Rs 700 crore during search conducted at real estate developer and dairy firm in Maharashtra’s Mumbai, Navi Mumbai and Pune.
The Income Tax Department initiated search and seizure operations on a real estate group, engaged in the construction of residential and commercial projects, in Mumbai and Navi Mumbai Region. The group is mainly carrying out development of slum rehabilitation projects. The search action covered around 30 premises.
The search action unearthed various methods of tax evasion adopted by the group. Several documentary and digital evidences have been found and seized demonstrating receipt of cash to the tune of Rs 100 crore, as part of consideration on sale of flats, which is not accounted for in the regular books of account. The fact of receipt of on- money on such transactions is also corroborated in the statements recorded during the search proceedings. The modus operandi adopted by the group includes issuing of promissory notes equivalent to the on- money component to the customers and these promissory notes are destroyed after registration of the flat.
Incriminating evidence regarding unaccounted cash payments made not only to the original tenants of the slums for vacating the dwelling unit but also to some other persons for facilitating vacation of the properties by slum dwellers has been found and seized. Further evidences suggesting irregularities and violation of guidelines of Slum Rehabilitation Authority (SRA) have also been detected.
The preliminary analysis of evidences revealed that the group has acquired controlling stake in a company by paying consideration in cash. Defaults on compliances to the provisions of tax deduction at source have also been found. The assessee group did not deduct tax at source on certain payments claimed by it which aggregate to more than Rs 300 crore. As a result of the search action, unaccounted cash exceeding Rs 6.00 crore has been seized.
In another search and seizure operations on a leading group of Pune, engaged in dairy farming and milk products, the IT department covered more than 30 premises spread over 6 cities in India.
During the course of search action, several incriminating documents and evidences of tax evasion have been found and seized. The preliminary analysis of these evidence clearly shows evasion of taxable income by adopting various malpractices such as claim of bogus purchases, unaccounted cash sales, cash loan transactions and their repayment, unexplained cash credits, etc. Instances of incorrect claim of loss on account of sale or death of livestock, etc. have also been noticed.
Evidence has also been gathered revealing that the assesse group has not maintained proper and separate books of account for claiming specific deduction from its taxable income.
The search operation has resulted in the seizure of unaccounted cash and unexplained jewellery of about Rs 2.50 crore while some bank lockers are yet to be operated. The search action, so far, has led to the detection of unaccounted income of more than Rs 400 crore.
