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I-T department detects Rs 50 crore tax evasion after raids on Jharkhand realty group

NEW DELHI: The Income Tax Department has detected tax evasion of over Rs 50 crore after it raided a “prominent” Jharkhand-based group dealing in building construction and real estate, the CBDT said on Thursday. The searches were carried out on Wednesday at 20 premises located in Ranchi and Kolkata.

The CBDT said in a statement issued here that “unexplained” cash of Rs 50 lakh was seized during the raids and three lockers have been placed “under restraint.”

“Preliminary evidence found suggests evasion of tax of more than Rs 50 crore.” “Post-search investigations are going on and tax evasion figures may go up substantially,” the CBDT said without identifying the group. The Central Board of Direct Taxes (CBDT) frames policy for the Income Tax Department.

During the raids, the statement said, it was found that the group was “not maintaining regular books of account.” Hence, the audit certificates and statements submitted to the tax department are “under investigation for genuineness.”

“As per details found during the search operation, it was seen that the group has been undertaking huge outside-the-books transactions in the building construction business and a large portion of sale proceeds is received in cash which remains unaccounted.”

“Part of the cash generated has been brought into the business through bogus share capital and unsecured loans from shell companies,” it alleged.

It said “at least 8 shell companies” were involved and relatives and persons of “no means” were appointed as directors of these ‘companies’ which existed only on paper.

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