Income Tax Raid On 2 Delhi Real Estate Groups, Rs 10 Crore Cash Seized


Income Tax Raid On 2 Delhi Real Estate Groups, Rs 10 Crore Cash Seized

The search operations were conducted on November 17.

New Delhi:

The Income Tax Department conducted searches on two real estate groups based in Delhi-NCR in connection with alleged large scale tax evasion and seized unaccounted cash of Rs 10 crore, informed the Central Board of Direct Taxes (CBDT) on Wednesday.

The search operations were conducted on November 17.

The evidence gathered so far indicates that undisclosed income could be to the tune of about Rs 400 crore.

According to the CBDT, these groups are engaged in the construction of commercial and residential projects.

The IT department also seized various incriminating evidences in the form of digital and physical data.

“On preliminary analysis of such data, it has been found that these groups are receiving part of the sale consideration in cash against the sale of flats and such cash is not recorded in the books of accounts. Thus, there is a large scale tax evasion, and due tax on such income has not been offered,” it said.

The search team has gathered evidence indicating that unaccounted income so earned is routed into the business through non-descript and non-functional shell entities run by professional entry providers or employees/associates of the group working as directors.

“One of the groups has also been found to be using a network of charitable organizations engaged in educational activities, purportedly for the purpose of tax evasion and financing its real estate business,” it added.

The evidence has also been found showing that the books of accounts maintained and produced before tax authorities are doctored by ‘reversal of payables’, ‘diminution of investment’ and ‘bad debts written- off’.

“Instances of the non-genuine claim of expenses by way of bogus purchases by connected parties from non-existent suppliers have also come to notice. Evidences of cash payments made to various parties towards securing land deals and other contracts, and making various unaccounted expenses in real estate activities have been unearthed,” it added.

Further investigations in these cases are in progress.

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