IT Department detects Rs 750 cr undisclosed income after raids on Bengaluru contractors
NEW DELHI :
THE Income Tax Department has detected undisclosed income of about Rs 750 crore after it raided three major Bengaluru-based contractors engaged in the execution of irrigation and highway projects, the CBDT said on Tuesday. The searches were launched on October 7 at 47 premises spread across four States. “These three groups were involved in suppression of their income by resorting to bogus purchases, inflation of labour expenses, booking of bogus sub-contract expenses etc. “Investigation found that one of the groups has booked bogus sub-contract expenses in the name of about 40 individuals of no means and unconnected to the construction business,” the Central Board of Direct Taxes said in a statement. It added that these individuals have admitted to the said manipulation.
“The search and seizure action in these three groups has resulted in detection of undisclosed income of about Rs 750 crore,” the CBDT said. “Out of this, aggregate amount of Rs 487 crore has been admitted by the respective group entities as their undisclosed income,” it said. One of the groups admitted to having indulged in “inflation of labour expenses amounting to Rs 382 crore”. Another group has been found to have taken accommodation entries from non-existing paper companies to the extent of Rs 105 crore, which stands “admitted” by this group, the CBDT said. It said Rs 4.69 crore of unaccounted cash, jewellery and bullion valued at Rs 8.67 crore and silver articles worth Rs 29.83 lakh were seized during the operation.