The Income tax department carried out search and seizure operations on two business groups of the Nandurbar and Dhule districts of Maharashtra. These groups are engaged in the business of civil construction and land development.

The search operation covered more than 25 premises spread across Nanndurbar, Dhule, and Nashik. During the search and seizure operation many incriminating documents, loose papers, and digital evidences 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.

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The preliminary investigation indicates that this group has evaded income to the extent of Rs 150 crore 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 have been carried out in cash which are 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 crore and jewellery valued at Rs 5 crore.

Meanwhile, in Rajasthan too, the income tax department carried out search and seizure operations on two groups and their business entities. One group is engaged in the business of manufacturing electrical switches, wires, LEDs, real estate and hotel business in Rajasthan, Maharashtra and Uttarakhand whereas, the other group is engaged in moneylending business in Jaipur and nearby cities. The search action has covered more than 50 premises spread over various locations including Jaipur, Mumbai, and Haridwar.

A large number of incriminating documents and digital data have been found and seized during the search action. A preliminary analysis of seized evidence reveals that several entities, engaged in the business of manufacturing switches, wires and LEDs have been selling such goods which are not recorded in the regular books of account. During the investigation, it was also noticed that they were claiming bogus expenses to reduce taxable income. The trail of receipt of cash component on unaccounted sale of goods has also been found.

In the case of this group, the search team has detected transactions evidencing undisclosed income of more than Rs 150 crore. The key person of the group has admitted Rs 55 crore as undisclosed income and has offered to pay tax thereon. The analysis of seized and other related documents relating to the other group has revealed that most of the loans are given in cash and a relatively high rate of interest has been charged on these loans. Neither the loans advanced nor the interest income earned thereon, have been disclosed in the returns of income of the persons engaged in this business. Evidence relating to undisclosed income of more than Rs 150 crore has been detected in this group. The search action, so far, has resulted in the total seizure of unaccounted cash and jewellery worth Rs 17 crore. Further investigations are in progress.