The Central Board of Direct Taxes (CBDT) was informed on Wednesday that the Income Tax Department conducted searches on two real estate organisations located in Delhi-NCR in connection with suspected large-scale tax evasion and seized unaccounted cash worth Rs 10 crore. On November 17, search and rescue activities were carried out. According to the information acquired thus far, the unreported income might be in the range of Rs 400 crore.
These organisations, according to the CBDT, are involved in the development of commercial and residential projects. Various damning evidences in the form of digital and physical data were also confiscated by the IT department.
Read also: Income Tax Department conducts searches in West Bengal
The investigation team discovered evidence that unexplained revenue is funnelled into the firm through nondescript and non-functional shell businesses controlled by professional entry providers or group employees/associates acting as directors.
“One of the groups was also discovered to be employing a network of charitable organisations involved in educational activities, ostensibly for the purpose of tax evasion and financing its real estate company,” the statement continued.
Read also: Income Tax Department conducts searches in Gurugram
Evidence has also been discovered that’reversal of payables,’ ‘diminution of investment,’ and ‘bad debts written-off’ are used to doctor the books of accounts kept and presented to tax authorities. These situations are now being investigated further.
