Income Tax Department conducts search operation on two real estate groups based in Delhi-NCR

RELEVANT EXTRACT 

The Income Tax Department carried out a search and seizure operation on  two real estate groups based in Delhi-NCR on 17.11.2021. These groups are  engaged in the construction of commercial and residential projects.

During the course of the search action, various incriminating evidences in the  form of digital and physical data have been found and seized. 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.

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. 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’ & ‘bad  debts written- off’. Instances of 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.

During the search operations, unaccounted cash of Rs. 10 crore has also  been seized. The evidence gathered so far, prima facie, indicates that undisclosed  income could be to the tune of about Rs. 400 crore.

Further investigations in these cases are under progress.

Source – https://www.incometaxindia.gov.in/

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