The Income-Tax Department has detected undisclosed income to the tune of about ₹400 crore during searches on two real estate groups based in and around Delhi. They are engaged in the construction of commercial and residential projects.
On preliminary analysis of the data seized during the operation, the agency has found that these groups were receiving part of the consideration in cash against the sale of flats and the cash was not being recorded in the books of accounts. “Thus, there is a large-scale tax evasion, and due tax on such income has not been offered,” said the I-T Department.
The search team came across evidence that unaccounted income so earned was being 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.
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“One of the groups has also been found to be using a network of charitable organisations engaged in educational activities, purportedly for the purpose of tax evasion and financing its real estate business...the books of accounts maintained and produced before tax authorities are doctored by ‘reversal of payables’, ‘diminution of investment’ and ‘bad debts written- off’,” said the agency.
Instances of non-genuine claim of expenses by way of bogus purchases, through connected parties, from non-existent suppliers were also noticed.
Evidence 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 operation, ₹10 crore in unaccounted cash has also been seized,” it said.
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