Income Tax Department conducts searches in Maharashtra.
During the search and seizure operation many incriminating documents, loose papers, and digital pieces of evidence have been found and seized.
In the case of entities belonging to the first group, the seized documents clearly reveal that they have resorted to large-scale suppression of taxable income by inflating their expenses, primarily by way of the claim of non-genuine sub-contract expenses and unverifiable old sundry creditors.
The search team has detected that these subcontracts have been awarded to family members and their employees who have not rendered services in this regard. Evidence has also been gathered about unrecorded expenses incurred in cash. The preliminary investigation indicates that this group has evaded income to the extent of Rs. 150 crores on account of the above malpractices.
In the case of the land developers, it has been found that a substantial part of the land transactions has been carried out in cash which is not accounted for in the regular books of account. Further, incriminating documents evidencing receipt of ‘on-money’ on land transactions and cash loans exceeding Rs. 52 crore have been found and seized.
The search action has, so far, resulted in the seizure of unaccounted cash of more than Rs. 5 crores and jewellery valued at Rs. 5 crores.
Further investigations are in progress.
