INVC NEWS
New Delhi : The Income Tax Department spearheaded a comprehensive search and seizure operation targeting government contractors, real estate developers, and their associates. The raids spanned 55 premises across Karnataka, Andhra Pradesh, Telangana, and New Delhi, unveiling a large scale of tax evasion practices.
Incriminating Evidence Seized
According to the Central Board of Direct Taxes (CBDT) press release, authorities seized a plethora of incriminating documents, including loose sheets, hard copies, and digital data. The evidence exposed a sophisticated modus operandi aimed at reducing taxable income through bogus purchases, illegitimate claims, and other non-genuine expenses.
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Modus Operandi of Tax Evasion Exposed
The tax evasion tactics involved inflating expenses by booking bogus purchases, making non-genuine claims with sub-contractors, and claiming ineligible expenses. These malpractices led to the generation of a substantial amount of unaccounted cash and undisclosed assets.
Discrepancies in Goods Receipt Notes
During the raids, authorities discovered discrepancies in Goods Receipt Note (GRN) validations. This evidence further substantiated the inflated expenses claimed by the contractors. Additionally, huge gaps in documentation related to actual goods transported were unearthed, confirming the involvement in bogus transactions.
Unaccounted Cash Transactions
Investigators found large-scale unrecorded cash transactions during the search, primarily from the premises of assessees, sub-contractors, and associates, including some known cash handlers.
Seizures: Cash and Assets
The search led to the confiscation of unaccounted cash amounting to approximately Rs. 94 crore, and gold and diamond jewelry worth over Rs. 8 crore. Furthermore, about 30 luxury wristwatches of foreign make were discovered at a private salaried employee’s premises, who is not engaged in the wristwatch business.
Ongoing Investigations
The operation has sparked further investigations into the detected irregularities, and the involved parties could face severe legal consequences.
