New Delhi: The Income Tax Department carried out a search and seizure operation on January 5, 2022, on three real estate developers, engaged in the business of land development as well as construction activities in the town of Kurnool and other mofussil areas of Andhra Pradesh and Telangana. More than two dozen premises have been covered in the search operation spread over Kurnool, Ananthapur, Kadapa, Nandyal, Bellary, etc, said a statement.
During the course of the search operations, several incriminating documents, such as handwritten books, agreements, etc. have been found and seized. Digital data has also been seized from a specialized software application as well as from other electronic gadgets. It has been found in the case of one of the assessee groups that it has been using software that has been systematically modified to eliminate the unaccounted cash element of the consideration received and to record in the regular books of account the sale consideration that matches with the registered sale price.
These groups have been found to be accepting cash over and above the registered value of the properties. Such unaccounted cash is used for payments of on-money towards the purchase of lands and incurring other expenditures. So far, the search action has led to the seizure of unaccounted cash of Rs.1.64 crore. The search has resulted in the detection of unaccounted cash transactions to the tune of Rs. 800 crore, the statement adds.
In another case, Income Tax sleuths carried out a search and seizure operation on January 5, 2022, on two groups, engaged in the business of quarry operation. More than 35 premises spread across districts of Kottayam, Eranakulam, Thrissur, Palakkad, and Kannur have been covered in the operation.
During the course of the search operation, various incriminating documents and digital evidence have been found and seized, including a parallel set of books of account recording the entries of actual sales and receipt of cash. These pieces of evidence have clearly revealed the modus operandi being followed by the quarry operators as they are indulging in large-scale suppression of sales made in cash including the fact that these transactions are not recorded in the regular books of account of the group.
The correlation of these pieces of evidence also indicates that unaccounted cash so generated is systematically invested in the acquisition of immovable properties, used for the business of cash loans, and unrecorded capital investments in other businesses. The search team has also gathered evidence of on-money payment for the purchase of properties and substantial cash deposits in undisclosed bank accounts. The assessees of the group have been found to have sold immovable properties without duly accounting for the capital gains arising from such transactions.
The search action has resulted in the seizure of unaccounted cash of more than Rs 2.30 crore.
So far, the search has led to the detection of estimated unaccounted income to the tune of Rs. 200 crores, the statement adds.
