Income Tax Department conducts search operations on a real estate group in Mumbai and Navi Mumbai Region of Maharashtra

RELEVANT EXTRACT 

The Income Tax Department initiated search and seizure operations on a real  estate group, engaged in the construction of residential and commercial projects, in  Mumbai and Navi Mumbai Region on 25.11.2021. The group is mainly carrying out  development of slum rehabilitation projects. The search action covered around 30  premises.

The search action unearthed various methods of tax evasion adopted by the  group. Several documentary and digital evidences have been found and seized  demonstrating receipt of cash to the tune of Rs.100 crore, as part of consideration  on sale of flats, which is not accounted for in the regular books of account. The fact  of receipt of on- money on such transactions is also corroborated in the statements  recorded during the search proceedings. The modus operandi adopted by the group  includes issuing of promissory notes equivalent to the on- money component to the  customers and these promissory notes are destroyed after registration of the flat.

Incriminating evidence regarding unaccounted cash payments made not only  to the original tenants of the slums for vacating the dwelling unit but also to some  other persons for facilitating vacation of the properties by slum dwellers has been  found and seized. Further evidences suggesting irregularities and violation of guide  lines of Slum Rehabilitation Authority (SRA) have also been detected.

The preliminary analysis of evidences revealed that the group has acquired  controlling stake in a company by paying consideration in cash. Defaults on  compliances to the provisions of tax deduction at source have also been found. The  assessee group did not deduct tax at source on certain payments claimed by it which  aggregate to more than Rs. 300 crore.

As a result of the search action, unaccounted cash exceeding Rs. 6.00 crore

has been seized.

Further investigations are under progress.

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

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