I-T Dept. detects unaccounted income of about ₹75 crore in Bihar

Income Tax Department. Representational image   | Photo Credit: K. MURALI KUMAR

The Income Tax Department has so far detected unaccounted income of about ₹75 crore during the searches against four prominent contractor groups in Bihar. Surveys have also been carried out against some traders of mined rocks in Gaya.

The searches have been conducted in Patna, Bhagalpur, Hilsa and Katihar, following information that the groups were evading taxes by inflating expenses for the supply of material and labour.

The Department has seized ₹3.21 crore in cash, while ₹30 crore in fixed deposits and properties worth ₹16 crore are being placed under prohibitory orders.

“In one case, payments have been made to various parties without any evidence of having received any services or supplies. Payments made to bogus parties are received back as an unsecured loan or sometimes withdrawn in cash. Such loans are of about ₹10 crore...substantial bogus purchases have been debited in the books,” said the agency in a release on Friday.

“These parties do not exist, but are shown as ‘creditors’...,” it said, adding that the total credit amount shown in the books was about ₹20 crore.

The Department has seized documents revealing that the creditors are not genuine. Bank accounts have been opened and are being operated by the assessee only. The cash so generated has been used in acquiring properties and for other purposes.

“Seized documents in another case also show that the payments for inflated expenses are being made by bearer cheques. These payments are withdrawn from the bank account by the assessee’s own persons. Such amounts are being quantified. There are sundry creditors for unpaid labour of about ₹15 crore. These have also been found to be bogus during the search,” said the agency.

The papers show inflation of expenses of about ₹15 crore in another group, which has made investments in properties in Bihar, Odisha and Madhya Pradesh.

“In another case, evidence of payments made for bogus purchases through cheques, but received back in cash, has been seized. The cash generated has been invested in purchasing properties and construction of a commercial building. Evidence of such concealment of income of about ₹10 crore, using this modus operandi, has been found,” the agency said.

During the surveys, the Department has come across evidence of unaccounted cash entries, sales and purchases involving over ₹8 crore. The accused had not kept an account of the sale and purchase of stones.

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Printable version | Dec 2, 2020 10:48:48 PM |

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