New Delhi: Ahead of assembly elections in Bihar, the Income Tax Department has intensified its enforcement operations in the state. Income Tax officers on Monday raided the places linked to two government contractors in Purnea, Katihar and Saharsa and a silk trader in Bhagalpur district, ministry of finance said in a statement on Wednesday.
“The searches were based on intelligence gathered, which indicated that large scale unaccounted cash was being generated and used for various purposes,” the ministry said.
Finance ministry officials said the contractors were making bogus claims of labour, transportation and fuel expenses, which were found to be not supported by any document.
Officials said these contractors have also been found to be withdrawing money in cash from the bank accounts of fictitious parties.
“Incriminating documents including signed blank cheques have been seized during the searches,” officials said.
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While elaborating on the modus operandi of these contractors, officials said that in some cases, the liabilities were shown to be continuing in the books of accounts for bogus expenses.
“They were also maintaining undisclosed bank accounts, in which unaccounted cash was being deposited which was used for making fixed deposits, which in turn were pledged to Government departments as security for getting contracts,” officials said.