IT Department raids the premises of a Rajkot-based real estate company, finds Rs 300 crore in unreported income
The Income Tax Department conducted a search and seizure of the properties of a major Rajkot-based real estate group and detected the concealment of income in excess of Rs 300 crore.
IT department’s search and seizure operation uncovered concealment of revenue over Rs300 crore (file photo)
The Income Tax Department conducted a search and seizure on August 24 at the properties of a major real estate group based in Rajkot, Gujarat. More than 40 premises of the group were covered in the operation. The company is active in real estate, construction and land trading in Rajkot and its surroundings.
During the search and seizure operation, numerous incriminated documents, loose sheets, digital evidence, etc. were entered indicating the group’s involvement in unrecorded transactions. Substantial evidence of off-book transactions, unrecorded cash expenditures, cash advances received and interest paid in cash was found.
Evidence of cash payments in real estate projects – apartments, shops and land transactions was also found. Total unrecorded cash flow from various projects of around Rs 350 crore has been uncovered, along with corroborating evidence.
In addition, evidence related to the purchase of land of around Rs 154 crore was also found, of which Rs 144 crore was reportedly paid in cash. Unaccounted for cash over Rs 6.4 crore and jewelry worth Rs 1.7 crore were seized from various premises. In addition, promissory notes to the tune of Rs 4 crore were also found and seized.
Overall, the search and seizure operation detected the concealment of income above Rs 300 crore spread over several years of valuation, which is likely to increase. Twenty-five lockers found during the search were placed under restraining order. The search operation is still in progress.
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